Silver is under pressure due to the strength of the US dollar, Fed spokesmen are watching
- The greenback is the focus for the open as it continues to gain across the board in Forex.
- Precious metals on the hindfoot when the fed turns up the heat.
The XAG / USD starts the week after falling about 0.50% on Friday on its hindfoot, ending at $ 25.7803 and hovering between a low of $ 25.7560 and $ 26.4997.
In a risk-free environment with 7 out of 18 FOMC members believing a prime hike could come in 2022, the greenback is for it as the search for carry still sees strong demand at the long end of the curve weighing down precious metals.
Movements at the shorter end of the US yield curve are positive for the dollar and there will be several daily speakers from the Federal Reserve this week, possibly to bolster the greenback. Markets will be on the lookout for new words from Fed spokespersons on tapering.
Any views on tapering from September versus later in the year will fuel the fire in the greenback and potentially push the markets over the edge.
XAG / USD technical analysis
Bears are putting pressure on weekly support at these lows, and if the dollar continues, the prospect of a recovery from the late March lows of $ 23.78 could be seen in the near future.
However, if support holds, a significant retracement could be back on the cards to test old lows.