Silver Struggles Near $38 as Trade Optimism Dulls Safe-Haven Appeal
Silver (XAG/USD) is holding near the $38.00 mark on Monday, showing little momentum after last week's technical breakdown. Although prices are steady on the day, improving global risk sentiment is putting pressure on the metal, as investors shift away from traditional safe havens like silver.
Optimism over the US-EU trade agreement is driving appetite for risk assets, reducing demand for silver. This rotation into equities and other risk-on instruments reflects growing confidence in the global economy, even as geopolitical risks remain.
From a technical standpoint, silver broke down from a cup and handle pattern on Friday, a structure typically seen as bullish. The breakdown occurred at around $38.70, turning the short-term outlook bearish and signaling possible further weakness.
Prices have now slipped below the 50-period EMA at $38.49 and are testing the 100-period EMA near $38.03. The RSI is hovering near oversold at 32.00, while the ADX at 36.86 signals strong bearish momentum.
If silver fails to hold above $38.00, the next key support lies at $37.50, the July 16 low. This level will be crucial to watch for either a technical rebound or deeper correction, as market focus turns to macroeconomic data and the Federal Reserve’s next move.(ayu)
Source: Newsmaker.id
