Solid News

Buyers of the USD were disappointed by the rhetoric of the head of the US Fed Jerome Powell, as a result of which all assets strengthened against the dollar, including silver, which reached the level of 23.00.

Earlier, as expected, the regulator decided to raise the interest rate by 25 basis points to 5.00%, which is the highest since 2007. At the same time, Jerome Powell did not disclose plans for further adjustment of the value this year, the median forecast for the indicator at the end of 2023 is still at 5.10%, and at the end of the next calendar year – at 4.30%, having increased from December 4.10%. The bankruptcy of Silicon Valley Bank and Signature Bank and problems in a number of smaller banks around the world have postponed the US Fed's interest rate hike to 50 basis points. Meanwhile, investors in precious metals took advantage of the situation and began to consider these instruments as safe haven assets, additionally creating demand, as a result of which the price increased significantly.

Against this background, the long-term trend in the XAG/USD pair will continue from the level of 20.00. Yesterday, the quotes reached another resistance level at 23.00. In case of continued growth and breakout of this level, the next target for purchases will be the area of 24.50. If the 23.00 level is held during trading, then a downward correction will begin, within which it will be possible to expect a price at 21.50, from which it is worth considering new purchases with a target at 23.00.

The mid-term trend changed to an uptrend last week. The target zone 21.76–21.59 was broken out. The next target for purchases is the target zone 23.46–23.29. New purchases may be considered on the correction from the key support of the trend 21.19–21.00, and as the first target, it is possible to focus on the maximum of the current week.

Resistance levels: 23.00, 24.50, 26.00. | Support levels: 21.50, 20.00, 18.00.