Birr price forecast rise bond increase will create expensive head wind

XAG / USD view

  • S.As U.S. treasury production peaked for several years, Ilver prices fell 1.6 percent.
  • Investors predict that the Central Bank’s consolidation cycle will be stronger than expected this week. Falcon Fedspeak
  • In this article we will examine the key technical steps for XAG / USD

Most read: Federal Chairman Paul said gold could lose its luster when a major price hike is taken to curb inflation.

Silver prices (XAG / USD) After the Federal Reserve dragged on bond market growth nosedived on Tuesday They promised to take immediate action. It shows a readiness to increase borrowing costs beyond the normal 25-point increase in the future if the price stability is restored and guaranteed.

In the last two sessions, The U.S. Treasury Curve has changed dramatically.Falcon following Fedspeak 2 and 10-year yields rose to 2.18% and 2.38%, respectively. Their highest level since May 2019. The promise of a reliable solution to inflation helped boost real productivity, bringing the US 10-year TIPS from -0.71% to -0.57% a week ago. In light of this, the XAG / USD traded lower at 1.6% in the afternoon trading session to 24.80%.

Non-commodities such as silver and gold could quickly become obsolete if their prices continue to rise and the US dollar is supported by high inflation. Central Bank Strict, although this prediction should be noted It is partly based on a geopolitical perspective.

In fact, The only reason we did not see a big change in the value of the precious minerals was Geopolitical risk includes premium and safe buying activity. Ukraine’s one-month-long war could wreak havoc on the world economy. “stagflation”. This uncertainty has prevented investors from significantly reducing their defensive positions, limiting recent correction. Observed here.

In any case, if the geopolitical tension eases and the sentiment improves, silver and gold could intensify their interest as traders turn their attention to risky and high-yielding assets earlier this month. On the other hand, if there is a fight In Eastern Europe Stronger, safer space flows can be accelerated again, which in turn increases productivity and raises the bar of precious metals.

Silver Technical Analysis

When writing, silver Failed Key technical support covering $ 24.50 to $ 24.60. This area has been tested a few times in recent days, but it has persevered. So we have to keep an eye on how prices respond Around the current levels Recent Guide. Having said that, the XAG / USD will rise sharply below the daily closing prices, sellers may launch an attack at $ 24.17, 50% Fibonacci support for the 2022 rally. On further weakness, the next major hurdle will be at $ 23.51.

On the contrary, if Buyers will return and Silver pillars high, initial resistance at $ 25.35. If bulls push the metal above this barrier, it could be on the verge of trying again with a 2022 high of $ 26.93.

Silver Price Technical Chart

Birr price forecast increase bond will create self-wind for precious metals

TradingView chart using silver

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