Solver prices’ recovery from 23.80 lows stalls below $24.25.
Precious metals edge up on Wednesday, favoured by a softer US dollar.
XAG/USD is expected to appreciate towards $25.20 – Commerzbank.
Silver futures are attempting to bounce up from intra-week lows at $23.80 on Wednesday. The precious metal has pared previous losses, turning positive on the day, although it remains unable to consolidate above $24.00, with sellers at the $24.20/25 area keeping upside attempts in check.
Precious metals are trading in a slightly positive tone on Wednesday’s US session as the greenback loses ground. The US Dollar Index is trading 0.2% lower on the day, retreating from 94.00 to the mid-range of 93.00, weighed by the decline in US Treasury bond yields.
Markets, however, remain broadly calm, moving within narrow ranges, with the investors awaiting monetary policy decisions by the European Central Bank and the Bank of Japan on Thursday, which are expected to give a fresh impulse to the major currency crosses and, probably, set the near-term direction for precious metals.
From a technical point of view, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, remains bullish on silver, expecting the pair to reach levels past $25.00: “Silver has rallied towards and failed just ahead of the $24.95 recent high and looks to be easing back to the 55-DMA at $23.41, provided it stabilizes around here an upside bias will remain (…) Resistance extends up to tougher resistance offered by the 200-DMA at $25.53 and $26.07, the August high. The market will need to regain this area to regenerate bullish impetus. Please note that the 55-week ma also lies at $25.29. We favor the topside but it may take several attempts to clear this band.”