Sell Silver Signal After Gold’s Failure at $2,530

While the Gold price has been sticking to the top, retesting the ATH several times, Silver has been making lower highs since May, which shows weakness. In this case, selling retraces higher offers higher odds of winning as well as a lower risk-reward ratio, so we decided to open a sell Silver signal a while ago, after the move higher today, which seems weak compared to the bearish moves which have been quite steep.

It has been a quiet day with no significant news updates. Market sentiment has been generally optimistic, which weighed on the safe haven assets like Silver and the CHF earlier, but the reaction after the US cash equity market opens brought some volatility. The US dollar continued its upward momentum, extending gains following Friday’s stronger-than-expected Non-Farm Payrolls (NFP) report, but precious metals made a retrace higher, with Silver climbing back above $28.

Silver Chart H1 – MAs Acting As Resistance, Pushing the Highs Lower

SILVER turned bullish in August as the USD weakened, rising above $30. However, it couldn’t sustain those gains and experienced a sharp drop of more than $2, falling nearly 10%, but finding solid support around $27.70. The 50-day SMA (yellow) also acted as resistance, with the price being rejected on Friday after the NFP report.

• Short and Medium-Term Outlook: XAG/USD remains bearish in the short to medium term, but silver is anticipated to resume its upward movement, potentially reaching $32.50 by May. This bullish outlook is supported by increased demand for silver, driven by innovations like Samsung’s new solid-state battery for electric vehicles, which could use up to five grams of silver per cell.
• Trading Strategy: Selling at higher price retracements as long as the near-term trend remains bearish. We decided to open a sell signal in Silver, after several upside-down candlesticks, which are bearish revering signals after the retrace higher. besides that, the 100 SMA (green) is acting as resistance.
• Recent Movement: During today’s US session, silver prices (XAG/USD) rose to around $28.35 per troy ounce. Mixed US NFP jobs data boosted the prospect of a 25 basis-point rate cut by the Federal Reserve in September, aiding non-yielding assets like gold and silver.
• Geopolitical Impact: Another factor contributing to the decline in silver prices is the easing of safe-haven flows. Geopolitical tensions in the Middle East have cooled as Israeli troops began withdrawing from Jenin, according to Reuters, citing the Palestinian news agency WAFA.

Silver Live Chart