XAG USD

Silver prices have stalled near multi-year highs with the bulls vulnerable into major resistance. Battle lines drawn on the XAG/USD weekly technical chart.

While central banks have been patting themselves on the backs for beating inflation, markets don’t seem too sure about that, and the move in silver as longer-dated US yields are surging suggests that the fight with inflation may not yet be over.

The underperformance of silver in the last couple of months follows a significant rally between March and May. The recent volatility in financial markets, driven by the unwinding of yen-funded carry trades, hit silver hard, given its higher risk sensitivity compared to gold. However, as market conditions stabilise, silver appears to be forming a base and could be set for a recovery this month.

EURUSD, Silver Outlook: with the sharp rebound of the US Dollar, EURUSD is facing bearish pressures below the 1.10 mark, whereas Silver is rising alongside global commodities.

For silver, a significant breakout earlier this year could lead to a surge to $35. However, in the short term, we need to see a bullish reversal before aiming for these longer-term targets. Thus, my gold and silver forecast remains bullish despite recent challenges.

Crude Oil and Silver Analysis: Oil is on track towards yearly lows while silver dives back into the 29 territory

Silver Outlook: The silver bull run has been in the headlines, but since when?

Gold enjoyed its best month in seven in October, with its 7.3% rise forming a clear bullish engulfing candle and was its third best month of the year. Whether it can extend its rally and make a run for a new record high remains to be seen, but we have seen gold failed around the $2075 highs three times since 2020. What would be so different this time?

If weekend reports are to be believed, large stimulus packages are to be announced in Japan which include cash handouts to all children aged 18 and below, regardless of household income.

Silver’s short-covering rally has covered an impressive 15% rise over the past 17 session, suggesting it may be time to mean revert.

It appears to be a case of “buy the rumour, sell the fact” for the US dollar, as prospects of higher inflation effectively confirming a November taper and earlier hike sent the dollar lower.