Precious metals are trying to regain some ground following the recent sell-off. Gold jumped above $1650 per ounce, while silver managed to erase early losses and is trading 1.5% higher as easing Treasury yields and overall negative sentiment around the dollar ( the dollar index fell below the 114 mark) lifted demand for precious metals. Also some traders may decide to book profits from their short positions. However investors need to remember that, a chorus of Fed policymakers indicated the central bank’s determination to do what is necessary to bring down inflation, even at the risk of a recession and further market volatility, therefore resumption of the downward move is still likely.
From technical point of view, SILVER price broke above local resistance at $18.60, which coincides with 61.8% Fibonacci retracement of the upward move started in March 2020. If buyers manage to uphold current momentum, upward correction may test the upper limit of the wedge formation or even psychological resistance at $20.00 per ounce. Source: xStaton5
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