XAGUSD
has been sold heavily with yesterday's CPI numbers. Hotter CPI than expected numbers increased the probability of postponing the start of rate cuts to a later than March. With this expectation,
XAUUSD
and
XAGUSD
were sold with the initial reaction and then they saw some recovery. Silver might have bottomed out. Why?
-
US10Y
is struggling to pass 200D MA. This is good news for the metals since it indicates no more hike pressure. This will allow metals to go higher.
-
XAUXAG
ratio is returning from the resistance. At the current level, it favors Gold. But if it drops below 84, the price movement in Silver will accelerate.
- Silver and
NDX
have some correlation. Despite the bloods on the street yesterday,
NDX
managed to stay positive. We may see a bull run until the first couple of rate cuts. This would bring the Silver along with it.
If this plays out, my target is around $30 for the first half of the year. Otherwise, Silver may fall into the bear trend and follow the purple channel.
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Comment:
Strong reaction from Silver today.