Silver (XAG) Forecast: Fed Minutes and 10-Year Auction Test XAGUSD Sellers
Daily Spot Silver (XAG/USD) Spot silver is trading sharply lower Wednesday after failing to hold the long-term 50% level at $60.835. The main trend is down according to the daily swing chart. The move through...
Daily Spot Silver (XAG/USD) Spot silver is trading sharply lower Wednesday after failing to hold the long-term 50% level at $60.835. The main trend is down according to the daily swing chart. The move through last Friday’s low at $59.69 signals a resumption of the downtrend.
A trade through the main top at $67.55 will change the main trend to up. The minor trend is down. A trade through the minor top at $62.09 will turn the minor trend up.
The first resistance is the short-term retracement zone at $61.04 to $62.98. Silver failed inside the lower half of this area early Wednesday. Taking out $62.09 would put the upper boundary at $62.98 in play, followed by the 50-day moving average at $64.21.
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The break below $59.69 leaves the swing bottoms at $56.56 and $54.78 as the next downside targets. The long-term value area remains $60.835 to $46.48. What to Watch The 10-year auction and the Fed minutes are what silver has to get through Wednesday.
The dollar is back near its high and the 10-year is back near its 2002 peak, so sellers aren’t waiting on a new reason. My read is the auction matters more than the minutes for silver today. Minutes look backward.
The auction shows in real time what it costs to clear a 10-year sale with yields already at 2002 levels. That’s the price silver has been trading against since the end of July. Oil running hot doesn’t make that sale any easier.
The dollar has a short walk back to Monday’s high. Silver’s been the weaker metal Wednesday, and it goes into the afternoon without a single piece of the financial trade on its side. Spot silver lost $60.835 early Wednesday, then took out Friday’s $59.69 low on the way to $58.99.
The bias is to the downside while the main trend is down, silver remains below the midpoint and the market trades under the 50-day moving average. The next swing bottom underneath is $56.56, with the minor top at $62.09 well overhead. More Information in our Economic Calendar .
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