Silver (XAG/USD) experienced a pullback from the $70.00 level but found buyers above $67.40 on Thursday, trimming losses and returning to the mid-$68.00s during the European morning session. The broader trend for silver remains bullish, with price action steady above previous highs around $67.00, despite a cautious market environment ahead of the Jackson Hole Symposium this week [1].
The US Dollar received some support on Wednesday after US Personal Consumption Expenditures (PCE) Price Index figures indicated that inflation remains sticky and well above the Federal Reserve's 2% target. However, market expectations for a September rate hike remained largely unchanged at 36%, according to the CME Group’s FedWatch Tool [1].
Market volatility is subdued as investors await Fed Chairman Kevin Warsh’s speech at the Jackson Hole summit on Friday, which is expected to provide further insight into the Federal Reserve’s near-term policy direction. Traders are closely watching for comments that could influence the direction of US Dollar crosses and precious metals, including silver [1].
From a technical perspective, XAG/USD maintains its bullish trend from mid-July lows below $55.00, with resistance at the $70.00 psychological level and a focus on the area between the mid-June highs at $71.55 and the 200-day Simple Moving Average (SMA), currently around $72.40. Momentum indicators such as the Relative Strength Index (14) near 63 and a positive but moderating MACD reading suggest firm, though not extreme, bullish momentum. On the downside, support is seen at $67.00, with a secondary floor at $63.25 and further support near $60.90 [1].
CONCLUSION
Silver remains in a bullish trend, supported above $67.40, as traders await key policy signals from the upcoming Jackson Hole Symposium. Market participants are cautious, with volatility subdued and technical indicators pointing to continued, though moderated, bullish momentum.