Silver (XAG/USD), Platinum Forecast
A shift in risk sentiment[1], ensuing from the reopening of global economies, have recently weighed on major commodities[2], pushing Silver[3] and Platinum prices to key Fibonacci support. With long term treasury yields on the rise; buoyed by inflationary concerns and the Federal Reserve’s persistent loose monetary policy, ‘safe haven’[4] assets such as Silver[5] and Gold[6], continue to attract investors who are looking for a means of diversification as well as a hedge against future inflationary pressure. However, recent US Dollar[7] strength, a known catalyst of price action[8], has recently supported the downward trajectory for both Silver and Platinum, hindering further progression from February highs.
Silver (XAG/USD[9]) Technical Analysis
Chart prepared by Tammy Da Costa[10], IG
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Platinum Technical Analysis
Meanwhile Platinum, the major commodity[12] commonly used in the auto motor industry to reduce emissions, has been at the discretion of supply as Emerging markets continue to experience decreases in short-term supply, hindering the progression of bullish continuation, with prices stalling at Fibonacci support while the CCI falls into oversold territory.
Chart prepared by Tammy Da Costa[13], IG
--- Written by Tammy Da Costa, Market Writer for DailyFX.com
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