Having largely shrugged off the latest mixed US Retail Sales report, spot silver (XAG/USD) prices are consolidating in the $23.50 region as focus turns to the upcoming release of the minutes of the January Fed meeting at 1900GMT. At current levels just under the $23.50 mark, the precious metal is trading with on-the-day gains of about 0.5%.

Geopolitics will likely remain the main driver of precious metal market sentiment. XAG/USD was weighed on heavily by Russian proclamations that it would be partially withdrawing troops from its border with Ukraine, pulling back sharply from February highs near $24.00 per troy ounce. But Western leaders, as well as government and intelligence officials have been warning that they have not yet seen any actual evidence of de-escalation and troop withdrawal, making for heightened confusion.

Silver (XAG/USD) prices remain sidelined around $23.35-40 during a quiet Asian session on Wednesday.

In doing so, the bright metal keeps the previous day’s bounce off the 100-DMA and ascending support line from February 03 amid the bullish MACD signals.

However, a daily closing beyond the 61.8% Fibonacci retracement (Fibo.) of November-December downside, around $23.90, will be crucial to convince the buyers.

Also challenging the XAG/USD upside is the 200-DMA level surrounding $24.30, a break of which will challenge January’s high of $24.70.

Alternatively, a daily closing below the 100-DMA and support line’s convergence, near $23.25, will convince silver sellers to attach the $23.00 threshold.

Following that, $22.60 and the monthly low of $22.00 may entertain XAG/USD bears ahead of directing them to the late 2021 trough close to $21.40.

Silver To Take Bearish Reversal From 61.8% Fibo

Feb 17 2022