The key level traders are monitoring today is $74.63.\u00a0A sustained move over this level will signal the presence of buyers and could produce the momentum needed to challenge the 50-day moving average at $79.24.\u00a0This is potential resistance and the trigger point for an acceleration to the upside with another key target coming in at $83.61. Prices could continue to climb over this level with traders setting their sights on $91.34 to $98.49.<\/p>\n
On the downside, a failure to overcome and sustain a rally over $74.63 will be a sign of weakness. This could trigger a quick break back to a minor retracement zone at $69.32 to $67.36. Buyers could come in on a test of this zone in an effort to form a potentially bullish secondary higher bottom.<\/p>\n
Ceasefire Drops Oil, Silver Picks Up Buyers From Both Sides<\/p>\n
The ceasefire caught oil traders off guard and prices dropped hard.\u00a0That\u2019s the direct line to silver.\u00a0Lower energy costs take inflation pressure off the table and when inflation fears ease, the Federal Reserve has less reason to stay tight.\u00a0Silver picked up buyers from two directions at once.\u00a0The safe-haven crowd came in on the geopolitical relief and the industrial crowd came in on the improving economic outlook.\u00a0Both groups were buying the same metal at the same time.<\/p>\n
Weaker U.S. Dollar Index Adds Another Layer of Support<\/p>\n
The U.S. Dollar Index softened at the same time and that made silver cheaper for foreign buyers.\u00a0Falling oil prices pushed traders to reassess inflation and rate cut expectations and the dollar felt that shift.\u00a0A less aggressive Federal Reserve stance combined with a weaker U.S. Dollar Index gave silver two reasons to move higher at once.<\/p>\n
Buyers Stay Active Despite Cautious Tone<\/p>\n
Thursday\u2019s session was quieter than Wednesday\u2019s but silver held onto most of its gains.\u00a0The ceasefire durability is still an open question and that kept some traders on the sidelines. The fact that silver didn\u2019t give back much tells you buyers are still there and still confident in the setup.<\/p>\n
Short-Term Outlook<\/p>\n
I like the setup here. The U.S. Dollar Index is soft, the geopolitical picture is calmer than it was a week ago and the rate cut conversation is moving in silver\u2019s favor.\u00a0That\u2019s three things working for the metal at the same time.<\/p>\n","protected":false},"excerpt":{"rendered":"The key level traders are monitoring today is $74.63.\u00a0A sustained move over this level will signal the presence…\n","protected":false},"author":2,"featured_media":386178,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,2791,2792,2794,2795,85,46,2796,2797,180494],"class_list":{"0":"post-386177","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-commodities","10":"tag-daily","11":"tag-fundamental","12":"tag-home-page-3","13":"tag-il","14":"tag-israel","15":"tag-silver","16":"tag-technical","17":"tag-xag-usd"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/386177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=386177"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/386177\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/386178"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=386177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=386177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=386177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}