Silver steady in the open, focus on the downside – FXStreet

  • Silver on the verge of a significant pullback. 
  • US dollar could find support at this juncture, both technically and fundamentally. 

The price of silver is soft in the open this week and is consolidating the bout of profit-taking post the Nonfarm Payrolls event on Friday. 

By the close of play on Friday, spot XAG/USD was ending at $26.46.

The price of XAG/USD ranged between a low of $25.98 and a high of $26.56 in a consistent upside drift throughout the day and sessions. 

In Asia today, the price is losing some 0.13% and has drifted from a high of $26.47 to a low of $26.42.

The greenback had been supported up to the NFP event but the fact was sold on the headline and the lack of wage inflation was an excuse to take in some profits ahead of the long weekend.

A gauge of wage inflation rose 0.3% last month, lower than the consensus forecast for a 0.4% increase.

The NFP print was not strong enough to upset markets nor weigh on precious metals, but from both a technical and fundamental standpoint, the greenback could be on the verge of an upside extension.

DXY daily chart

Dollar Index Spot 2021 07 04T180658.867 637610404350863298

XAG/USD daily chart

Technically, the probe of  26.50 puts the bulls back in charge and opens risk towards 26.70 mid-May lows.

However, a pullback could be on the cards first:

XAG USD 2021 07 04T181141.151 637610407131731395

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