Forex Marketz Daily Forex News – Fully Markets Update
Precious metals like the spot silver futures contract has come under selling pressure after the U.S. Federal Board published their monthly monetary policy meeting minutes. The minutes revealed a divided monetary board. Tapering of monthly asset purchases could happen.
However, the U.S. Federal Board is divided over when to normalize monetary policy or raise interest rates. Inflation has spiked but does not look sustainable and the U.S. labor market is still over six million jobs short from the pre-pandemic level.
The spot silver futures contract is priced in dollars and the greenback is trading near a nine month high in its basket of currencies. The white metal is trading around $23.25 per ounce as we head into Friday. On Thursday, this contract fell 1.15 percent.
The European Union’s economic calendar is quiet. The world’s largest economy, the United States, will publish private weekly Baker Hughes crude oil inventory data. This includes the weekly active rig count. The United Kingdom is publishing their monthly core and headline retail sales numbers. The Gfk institute will publish their monthly consumer sentiment survey for the United Kingdom.
Canada will also release monthly core and headline retail sales numbers. The Great White North will also publish their monthly housing price data.
Daily Spot Silver Technical Analysis
Looking at the above spot silver (XAG/USD) futures contract in the daily time frame, the 14 day relative strength index (RSI) is trending lower but above thirty (30). The short term 21 day simple moving average is sloping lower but the 100 and 200 day simple moving averages are flat.
Price action is also below all three daily simple moving averages as price action hit a low price point at 23.07 before retracing higher to near $24 per ounce before inching lower again. On the upside there is technical resistance at yesterday’s high price point of $23.52 per ounce. The 17 August high price is at 23.95.
On the downside there is a congestion zone in play at 23.07 to 22.98. The 9 August low price level then comes into focus at $22 per ounce.
