Silver prices whipsaw between $22.35 and $22.75 before returning to previous ranges.
Precious metals’ upside attempts remain limited by US dollar strength
XAG/USD treading water around $23.50.
Silver futures have whipsawed between $22.35 and $22.75 on Tuesday, to consolidate near $22.60 during the US trading session. On the daily chart, the precious metal remains practically unchanged with upside attempts weighed by US dollar strength
Silver and other precious metals appreciated earlier on Tuesday, fueled by a moderate risk aversion on rising concerns about the economic consequences of surging inflation. Beyond that, the negative opening of US Treasury bonds weighed on the US dollar, driving silver prices somewhat higher.
The precious metal’s rally, however, has been short-lived. The US dollar has bounced up, with US T-Bond yields regaining lost ground, with the market anticipating the market pricing the upcoming announcement of QE tapering by the Federal Reserve. The US Dollar Index has bounced up above $94.25 earlier today to extend towards year-to-date highs beyond 94.50.
From a technical perspective, the pair remains moving within a horizontal range. On the upside, September 22, October 8 highs, at $23.15 remain the main obstacle to extend gains towards 14, 16 September highs, at $24.00, and of September 3 high at $24.87.
On the downside, immediate support lies at $22.15 (October 6 low) and below here, $21.37 (September 29 low) and 20.75 (50% Fibonacci retracement of the March-August 2020 rally.