Silver Price Forecast: XAG/USD Breakout Stalls at Key Resistance
Key Talking Points:
XAG/USD rejected at key resistance
Silver prices are battling a key resistance after rising more than 2.5% in yesterday’s session. This was following the move in gold prices as the resurgence of Covid-19 cases in some parts of the world is dampening prospects of economic recovery, boosting demand for safe-haven assets. That said, there is still a broad demand for risk sentiment so the bullish push in silver may be short-lived.
The greatest risks to markets right now are the strong surge in virus cases in places like India and the possible shift in Central Bank monetary policy. Despite vaccination rates increasing at a promising level in many developed countries, there is still a shortage of doses in many emerging countries where infection rates are still out of control, posing a risk to broader economic recovery.
Yoganand D
BL Research Bureau |
Updated on
February 08, 2021
Break of the resistance at 72.8 can take the rupee higher to 72.75 or 72.65; traders can then go long with fixed stop-loss
After appreciating marginally in the past week, the Indian rupee (INR) closed at 72.8 against the US dollar (USD). It continues to test a key resistance in the band between 72.8 and 73.0. Today, the currency started the session on a flat note, opening at 72.81 and turning weak. It is trading in a sideways band between 72.8 and 72.95. A rally above the key barrier at 72.8 can take the rupee higher to 72.75 and then to 72.65. However, a fall below the base level of 72.95 or 73 can pull the local currency down to 73.11 and then to 73.2 levels in the near term.