- Silver prices running into daily resistance and focus is on weekly downside.
- US dollar was under pressure overnight, but the landscape is bullish.
XAG/USD is trading at $24.4460 and slightly bid in early Asia. The price was bid overnight due to the US dollar’s move to the downside.
XAG/USD ended the day up some 1.7% having climbed from a low of $23.7805 to a high of $24.5292.
Additionally, the white metal performed better than its sister metal, gold, with the gold to silver ratio ending down 0.35% on the day.
The dollar index, a gauge of its value against six major currencies, fell 0.1% to 93.124. However, it was on track to post its biggest quarterly gain since June 2018, up around 3.5%
The US dollar is expected to continue to attract investment due to the decoupling of the US economic recovery.
Due to massive stimulus measures, the US is expected by some economists to grow 6% in 2021.
However, President Joe Biden’s $2 trillion plan to create more affordable housing, rebuild roads, bridges and railways and provide incentives for electric vehicles, unveiled on Wednesday, now faces a rough ride in US Congress, where Democrats hold a slim majority.
Silver technical analysis
We have seen a fresh weekly bearish impulse to touch new cycle lows of $23.7805 painting a weekly head and shoulders on the chart.
From a daily perspective, the current bid could well run into resistance at this juncture and subsequently result in a fresh daily impulse to the downside for a fresh cycle low.