XAG/USD bulls reclaimed the $19.00 before the Jackson Hole event

  • Silver prices rose 0.70% amid bearish market sentiment that weighed on the greenback.
  • Higher US Treasury yields weighed on XAG/USD prices.
  • Market participants’ focus is on Wednesday’s durable good orders, along with the Fed speaking on Friday, chaired by Chair Powell.

Silver prices erase Monday’s losses and are higher as Wall Street ended the day with minimal losses amid gloomier sentiment buoyed by US economic data that fell to contractionary levels. Also, traders are bracing for an expected hawkish speech by Federal Reserve Chair Jerome Powell in Jackson Hole, which boosted silver’s appeal at the expense of the US dollar. At the time of writing, XAG/USD is trading at $19.11 and is up 0.70%.

US stocks ended the day lower. Earlier in the New York session, S&P Global reported US PMIs for August, with the services and composites indexes slipping into bearish territory, reading 44.1 and 47 respectively. In contrast, the Manufacturing Index slipped to 51.3 but remained in expansionary territory despite the lack of estimates.

In the US data release, the US dollar weakened across the board, with the US dollar index slipping to 108,200 from around 109,000. To the contrary, US T-bond yields rose four basis points to 3.057%, led by the US 10-year Treasury yield, a headwind for silver prices.

In addition, US housing data showed that new home sales declined at the slowest pace since 2016, falling for the sixth straight month as the market continues to deteriorate as the US Federal Reserve tightens monetary policy. New home sales fell 0.51m from estimates of 0.575m

Something to see

The US economy chart will include July durable goods alongside housing data, showing the US economy is slowing on Wednesday.

Silver Key Technical Levels

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