- The resumption of Solver prices from 23.80 points lows below $ 24.25.
- Precious metals edged up Wednesday, helped by a weaker US dollar.
- XAG / USD should appreciate towards $ 25.20 – Commerzbank.
Silver futures are trying to bounce back from weekly lows of $ 23.80 on Wednesday. The precious metal reduced previous losses, turning positive on that day, although it remains unable to consolidate above $ 24.00 with sellers in the $ 24.20 / 25 zone controlling attempts to rise .
Precious metals soar as US dollar weakens
Precious metals are trading on a slightly positive tone in Wednesday’s US session as the greenback loses ground. The US dollar index traded down 0.2% that day, falling from 94.00 to 93.00, on lower yields on US Treasury bonds.
Markets remain broadly calm, however, moving within narrow ranges, as investors await monetary policy decisions from the European Central Bank and the Bank of Japan on Thursday, which are expected to give major currency crosses new impetus and, possibly, define the short-term direction for precious metals.
XAG / USD remains positive, targeting $ 25.53 – Commerzbank
From a technical standpoint, Karen Jones, FICC Technical Analysis Research team leader at Commerzbank, remains bullish on silver, expecting the pair to hit levels above $ 25.00: “The silver rallied and failed just before the recent high of $ 24.95 and revert to 55-DMA at $ 23.41, provided it stabilizes here, a bullish bias will remain (…) Resistance s’ extends to harder resistance offered by the 200-DMA at $ 25.53 and $ 26.07, August high. The market will have to regain this zone to find a bullish momentum. Please note that the 55 week ma is also at $ 25.29. We favor the topside but it may take several attempts to clear this band.