Silver may continue to grow in near future

05 September 2023 155
Silver may continue to grow in near future

The price of silver is decreasing for the fourth day in a row after reaching a month high. Earlier, the price spike occurred against the background of the dollar depreciation and rumors about the change of monetary policy. 


On Friday, there was an increase in Treasury bond yields. It was largely influenced by the latest data on employment in the United States. The unemployment rate in August amounted to 3.8%. This amount is more than 3.5% in July and is the highest since February 2022.  


Traders mostly expect additional signals concerning the state of the U.S. economy ahead of the scheduled Fed meeting this month.

According to the FedWatch tool, the likelihood of monetary policy remaining unchanged in September is 93%.

The future policy of various central banks also affects the price of silver.


Financial regulators of developed and emerging markets reduced the pace and amount of interest rate hikes in August due to diverging growth prospects and inflation risks, complicating the outlook for the future.


Meanwhile, investor sentiment in the Eurozone was worse than expected in early September. According to Monday's survey, German economic weakness remains the main concern in the region.


On Monday, Goushi Kataoka, a former member of the Japanese regulator's board of directors, said that the Bank of Japan may refuse the loose monetary policy only after it reaches a sustainable inflation target of 2%.


The level of interest rates, economic conditions, and the level of uncertainty in global markets strongly influenced demand for risk-free assets such as gold and silver.


The silver rate demonstrates the corrective growth in the D1 timeframe.


According to wave analysis, the price forms the second descending wave in the H4 timeframe. The moving indicators of the Stochastic Oscillator (standard values) entered the oversold zone, which indicates the likelihood of price growth. That may create conditions for the trend reversal and the beginning of the third upward wave.


Signal:

Short-term prospects for silver are buying.

Target is at the level of 26,400.

Part of the profit should be fixed around the level of 24,850.

Stop-loss is around the level of 22,450.


The bullish trend is short-term, so choose a trading volume of no more 

This content is for informational purposes only and is not intended to be investing advice.

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