XAGUSD Analysis: Silver Price Up Over 7% in 2 Days
FXOpen
On Friday morning the price of silver was USD 24.8. The sharp rise was triggered by the weakening of the dollar on Wednesday, which was influenced by inflation data in the US.
When looking for reasons why silver is stronger than other commodity markets (for example, gold has risen in price by no more than 1.5% over the same period), you may not find satisfying explanations, but pay attention to information on twitter by Robert Kiyosaki (author of the books in the Rich Dad series). In his opinion, on August 22 in South Africa, at the BRICS forum, the creation of a currency backed by gold will be announced. Therefore, Robert predicts problems for the US dollar and suggests considering buying gold, silver, and bitcoin.
In the meantime, the XAG/USD chart shows that the price of silver has approached the upper boundary of the long-term descending channel (shown in red). If the bulls try to reach the upper border of the channel, then perhaps before that we will see a test of the level of 24.5, which previously served as both support and resistance.
Start trading commodity CFDs with tight spreads (additional fees may apply). Open your trading account now or learn more about trading commodity CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
XNG/USD Analysis: Geopolitical Risk Meets a Fading Uptrend
Natural gas has been on a genuinely volatile ride this week, briefly topping $3.00/MMBtu on Tuesday before reversing sharply lower as fading cooling demand outweighed strong LNG export needs. The commodity, currently trading near $2.91, remains up
Dollar Fails to Hold Post-NFP Gains: AUD/USD and USD/CAD Test Key Levels
The US dollar failed to hold its gains following a significantly stronger-than-expected US employment report. The economy added 162,000 jobs versus the forecast of 56,000, while the unemployment rate remained at 4.1% and previous employment figures were
EUR/AUD: A Quiet RSI Signal Challenges the Downtrend
The euro enters this week's ECB meeting (September 9–10) with genuine hawkish backing, having already been told by insiders that policymakers are prepared to raise rates again to counter the inflationary side-effects of the Middle East conflict, even as