Key Takeaways:
- Silver price rebounds from $29.00 as slower US Retail Sales growth impacts the US Dollar and bond yields.
- Sluggish US Retail Sales prompts Fed rate-cut bets for September.
- US households cut spending on discretionary items.
Silver Price Rebounds on Slower US Retail Sales Growth
Silver price (XAG/USD) has seen a strong bounce back from the crucial support level of $29.00 in the recent American session. This recovery comes as US Retail Sales growth falls below expectations, impacting the overall market.
The US Census Bureau reports a decrease in household spending on discretionary items, driven by concerns over increased delinquency costs and softer gasoline prices. This trend has put pressure on the US Dollar and bond yields.
Lower-than-expected Retail Sales growth has raised expectations of potential rate cuts by the Federal Reserve, with the CME FedWatch tool showing increased probability of cuts in the upcoming September meeting.
Silver Technical Analysis
Silver price is currently trading within a Falling Channel chart pattern, with each pullback seen as a selling opportunity. The asset is targeting a move above the 200-period Exponential Moving Average (EMA) at $29.40.
The 14-period Relative Strength Index (RSI) is consolidating in the 40.00-60.00 range, indicating potential stability in the near term.
Silver Four-Hour Chart
FAQs:
1. What caused the rebound in Silver price?
The rebound in Silver price was driven by slower US Retail Sales growth, which put pressure on the US Dollar and bond yields, prompting expectations of rate cuts by the Federal Reserve.
2. Why did US households cut spending on discretionary items?
US households cut spending on discretionary items due to concerns over increased delinquency costs and softer gasoline prices. This, coupled with banks’ reluctance to increase credit growth, contributed to the decrease in spending.
3. What technical pattern is Silver price currently trading in?
Silver price is trading within a Falling Channel chart pattern, where each pullback is seen as a selling opportunity. The asset is aiming to move above the 200-period Exponential Moving Average (EMA) around $29.40.
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