Strong US Dollar Makes Silver Less Competitive
The global silver price (XAG/USD) fell by around 0.12% to US$37.95 per troy ounce in Friday's trading, after previously hovering around US$38.51. This weakening was triggered by the strengthening of the US dollar following the release of stronger-than-expected US economic data.
High Producer Price Index (PPI) data and consistently low jobless claims boosted confidence that the US economy remains solid. This has prompted investors to shift to the US dollar, dampening interest in dollar-based assets like silver. Despite this, silver has rallied by around 32.4% this year, maintaining its status as a popular safe-haven asset.
The nearest support level is at US$37.15, while resistance lies between US$38.73 and US$39.52. However, most daily technical indicators are showing sell signals, indicating the potential for further correction if support fails to hold.
Analysts believe that the potential for upside remains if the price can hold above key support, with a target of US$39. Conversely, failure to maintain this level could send the price back to the US$37.00 range.
Source: Newsmaker.id
