Categories: Forex News
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2023-11-02 12:31 PM

Silver Shines: Gains Hold Amidst US Dollar’s Post-FOMC Dip

  • Silver (XAG/USD) continues its upward trend from recent lows, currently trading around the R425.50 benchmark (from $23.00), influenced by the US Dollar's post-FOMC downtrend.
  • Despite positive indicators for silver's growth, it faces consistent resistance near the R438.10-R438.95 area (from $23.60-$23.70). A clear breach of this resistance could potentially push silver beyond the R444.00 landmark (from $24.00) and towards the R462.50 mark (from $25.00).
  • On the downside, there's a strong support at the R416.25-R417.33 region (from $22.50-$22.45). Further sell-offs might pull silver to the foundational R407.00 level (from $22.00), with possible further declines reaching as low as October's R383.00-R383.03 mark (from $20.70-$20.65).
     
By Nonhlanhla

Silver’s performance (XAG/USD) carries forward its momentum, showing a promising rise from its recent dips around the mid-R407.00s range (from mid-$22.00s), which were noted to be multi-day lows. Thursday’s trading activities reveal silver persistently holding onto its gains, hovering close to the significant R425.50 benchmark (from $23.00), registering a daily rise of slightly over 0.20%.

Factors such as the post-FOMC US Dollar’s continuous downtrend are observed to be influencing the market towards the US-priced commodities. This is especially relevant for silver, given the Dollar’s prominence in global trade dynamics. As a result, South African investors and businesses dealing in commodities and forex stand to benefit or need to realign strategies based on these shifts. Besides these macroeconomic drivers, there are distinct positive markers in the daily technical charts that hint at silver’s potential upward trajectory.

However, silver’s performance comes with its challenges. Recent trends have shown a consistent resistance near the R438.10-R438.95 area (from $23.60-$23.70), forming what experts recognize as a bearish multiple tops pattern. This trend suggests potential hazards for those bullish on silver. For a brighter outlook, keen observers await a clear breach beyond the R438.10-R438.95 resistance. A solid leap past this could direct silver’s aim beyond the R444.00 landmark (from $24.00), potentially reaching as high as the coveted R462.50 mark (from $25.00).

Conversely, we notice a firm support building around the R416.25-R417.33 region (from $22.50-$22.45). If the market experiences a deeper sell-off, this could catalyze a bearish sentiment, potentially pulling the XAG/USD down to the foundational R407.00 mark (from $22.00). If the descent continues, silver might then navigate towards the R401.45 range (from $21.70) and possibly even plummet to October’s seven-month low around the R383.00-R383.03 vicinity (from $20.70-$20.65).

With the global silver market exhibiting these tendencies, South Africa’s rich mining sector and investment landscape are advised to monitor these trends closely, as they could spell significant economic implications for the nation.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: Silver