The Reserve Bank of Australia (RBA) left its cash rate unchanged at 4.35% at its monetary policy meeting today, Commerzbank’s FX Analyst Volkmar Baur notes. Hawkish RBA is supporting the Australian dollar “This was expected by both the market and all economists surveyed by Bloomberg, given the continued strength of the labor market. The fact that the Australian dollar is slightly higher this morning is likely due to the RBA reiterating that it is not ruling anything out for the future. This means, another rate hike is still on the table, at least in theory.” “Given the recent weakness in the economy - the PMI for the broader economy fell below 50 yesterday - a further tightening of monetary policy is unlikely. But it also shows that the RBA is still debating whether to cut rates at all, not just when.” “For now, the hawkish RBA is supporting the Australian dollar. However, I am afraid that this may be too much of a drag on the economy, and this will be reflected in a weaker AUD in the coming months.”

The Reserve Bank of Australia (RBA) left its cash rate unchanged at 4.35% at its monetary policy meeting today, Commerzbank’s FX Analyst Volkmar Baur notes. Hawkish RBA is supporting the Australian dollar “This was expected by both the market and all economists surveyed by Bloomberg, given the continued strength of the labor market. The fact that the Australian dollar is slightly higher this morning is likely due to the RBA reiterating that it is not ruling anything out for the future. This means, another rate hike is still on the table, at least in theory.” “Given the recent weakness in the economy - the PMI for the broader economy fell below 50 yesterday - a further tightening of monetary policy is unlikely. But it also shows that the RBA is still debating whether to cut rates at all, not just when.” “For now, the hawkish RBA is supporting the Australian dollar. However, I am afraid that this may be too much of a drag on the economy, and this will be reflected in a weaker AUD in the coming months.”

CB Consumer Confidence edged higher lower to 98.7 in September US Dollar Index remains under pressure and approaches further to 100.00. Consumer sentiment in the United States (US) deteriorated in September, with The Conference Board's (CB) Consumer Confidence Index falling to 98.7 in September after printing at 105.6 in August. The Present Situation Index fell by 10.3 points to 124.3, while the Expectations Index declined by 4.6 points to 81.7 but remained above 80, indicating recession fears continue to recede.

CB Consumer Confidence edged higher lower to 98.7 in September US Dollar Index remains under pressure and approaches further to 100.00. Consumer sentiment in the United States (US) deteriorated in September, with The Conference Board's (CB) Consumer Confidence Index falling to 98.7 in September after printing at 105.6 in August. The Present Situation Index fell by 10.3 points to 124.3, while the Expectations Index declined by 4.6 points to 81.7 but remained above 80, indicating recession fears continue to recede.

The European Central Bank (ECB) governing council member Klaas Knot said on Tuesday that the central bank is likely to continue to cut interest rates at least through the first half of 2025, to a level between 2% and 3%, per Reuters. Key quotes "I would expect us to continue to gradually reduce interest rates in the coming time, also in the first half of 2025.“ "I don't expect rates to return to the extremely low levels we saw before the pandemic. They will likely end up on a somewhat more natural level. I don't know where exactly, but somewhere starting with a 2.”

The European Central Bank (ECB) governing council member Klaas Knot said on Tuesday that the central bank is likely to continue to cut interest rates at least through the first half of 2025, to a level between 2% and 3%, per Reuters. Key quotes "I would expect us to continue to gradually reduce interest rates in the coming time, also in the first half of 2025.“ "I don't expect rates to return to the extremely low levels we saw before the pandemic. They will likely end up on a somewhat more natural level. I don't know where exactly, but somewhere starting with a 2.”

The Hungarian MPC paused monetary easing in August as underlying inflation indicators were not improving at all in the preceding months, Commerzbank’s FX Analyst Tatha Ghose notes. MNB to nudge its base rate lower from the current 6.75% “The guidance remained that further rate cuts were in the pipeline, but not immediately – stubborn service sector inflation did not allow this. The central bank (MNB) wanted to be cautious and aim for a positive real interest rate at the end of the easing cycle. Against this background, market expectations remained for two more 25bp rate cuts by the end of the year.” “Circumstances have slightly changed since, and one of these cuts is likely to be made today. In August, Hungarian inflation indicators improved sharply, with both headline and core inflation momentum noticeably decelerating. The increase in tax-adjusted core CPI slowed from a preceding 3-month average rate of circa 0.4% m/m to 0.2% m/m.” “Given the many dovish signals by major global central banks recently, it is to be expected that MNB would now nudge its base rate lower from the current 6.75%. The forint is currently benefiting from a stronger euro, and is unlikely to be negatively affected by such a rate cut.”

The Hungarian MPC paused monetary easing in August as underlying inflation indicators were not improving at all in the preceding months, Commerzbank’s FX Analyst Tatha Ghose notes. MNB to nudge its base rate lower from the current 6.75% “The guidance remained that further rate cuts were in the pipeline, but not immediately – stubborn service sector inflation did not allow this. The central bank (MNB) wanted to be cautious and aim for a positive real interest rate at the end of the easing cycle. Against this background, market expectations remained for two more 25bp rate cuts by the end of the year.” “Circumstances have slightly changed since, and one of these cuts is likely to be made today. In August, Hungarian inflation indicators improved sharply, with both headline and core inflation momentum noticeably decelerating. The increase in tax-adjusted core CPI slowed from a preceding 3-month average rate of circa 0.4% m/m to 0.2% m/m.” “Given the many dovish signals by major global central banks recently, it is to be expected that MNB would now nudge its base rate lower from the current 6.75%. The forint is currently benefiting from a stronger euro, and is unlikely to be negatively affected by such a rate cut.”

In addition to Gold, forecasts revised for the other precious metals, Commerzbank’s commodity analyst Carsten Fritsch notes. Gold/Silver ratio to remain roughly at its current level “In line with Gold, we have revised our forecast for the Silver price at the end of the year upwards to $31 per troy ounce (previously $30). The c. We leave the price forecast for 2025 unchanged, with the exception of a small upward revision for the first quarter to $32. For mid-2025, we expect c32 and for the end of 2025, $33.” “By contrast, we have revised downwards our forecast for Platinum to $1,000 per troy ounce at the end of the year, from $1,100 previously. The record supply deficit expected by the WPIC this year has so far not been able to push up the price of Platinum. In addition, there have recently been considerable outflows from Platinum ETFs. The lower starting level also reduces the forecast trajectory for next year. In mid-2025, we expect Platinum to trade at $1,050, and at $1,150 at the end of 2025 (previously $1,150 and $1,250, respectively).”

In addition to Gold, forecasts revised for the other precious metals, Commerzbank’s commodity analyst Carsten Fritsch notes. Gold/Silver ratio to remain roughly at its current level “In line with Gold, we have revised our forecast for the Silver price at the end of the year upwards to $31 per troy ounce (previously $30). The c. We leave the price forecast for 2025 unchanged, with the exception of a small upward revision for the first quarter to $32. For mid-2025, we expect c32 and for the end of 2025, $33.” “By contrast, we have revised downwards our forecast for Platinum to $1,000 per troy ounce at the end of the year, from $1,100 previously. The record supply deficit expected by the WPIC this year has so far not been able to push up the price of Platinum. In addition, there have recently been considerable outflows from Platinum ETFs. The lower starting level also reduces the forecast trajectory for next year. In mid-2025, we expect Platinum to trade at $1,050, and at $1,150 at the end of 2025 (previously $1,150 and $1,250, respectively).”

Bank of Canada (BoC) Governor Tiff Macklem noted early Tuesday that the BoC will continue to carefully watch consumer conditions in Canada, reiterating that the BoC's timing and pace of rate cuts will be dependent on data. Key highlights With continued progress we've seen on inflation, it is reasonable to expect further cuts in our policy rate. We will also be looking for continued easing in core inflation, which is still a little above 2%. Bank of Canada is pleased to see inflation at 2%, now we need to stick the landing. The timing and pace will be determined by incoming data and our assessment of what those data mean for future inflation. The bank is scaling down work on retail central bank digital currency, shifting focus to broader payments system research and policy development. There is a notable increase in financial stress among borrowers without a mortgage, mainly renters. We will be closely watching consumer spending, as well as business hiring and investment. I am concerned by the rising share of borrowers without a mortgage who carry a credit card balance of at least 90% of their credit limit.

Bank of Canada (BoC) Governor Tiff Macklem noted early Tuesday that the BoC will continue to carefully watch consumer conditions in Canada, reiterating that the BoC's timing and pace of rate cuts will be dependent on data. Key highlights With continued progress we've seen on inflation, it is reasonable to expect further cuts in our policy rate. We will also be looking for continued easing in core inflation, which is still a little above 2%. Bank of Canada is pleased to see inflation at 2%, now we need to stick the landing. The timing and pace will be determined by incoming data and our assessment of what those data mean for future inflation. The bank is scaling down work on retail central bank digital currency, shifting focus to broader payments system research and policy development. There is a notable increase in financial stress among borrowers without a mortgage, mainly renters. We will be closely watching consumer spending, as well as business hiring and investment. I am concerned by the rising share of borrowers without a mortgage who carry a credit card balance of at least 90% of their credit limit.

The US Dollar Index lost further ground on Tuesday, pushed lower by rising expectations of further double rate cuts from the Federal Reserve (Fed) in November as a follow-up to September’s 50 bps jumbo rate slash. Rate markets are now pricing in 60% odds of a second 50 bps rate cut on November 7, with the remaining 40% expecting a more reasonable 25 bps. EUR/USD rallied heading into the midweek after kicking off the trading week with a bearish pullback. Still, the pair is getting buoyed by Greenback weakness rather than any particularly bullish Euro flows.

The US Dollar Index lost further ground on Tuesday, pushed lower by rising expectations of further double rate cuts from the Federal Reserve (Fed) in November as a follow-up to September’s 50 bps jumbo rate slash. Rate markets are now pricing in 60% odds of a second 50 bps rate cut on November 7, with the remaining 40% expecting a more reasonable 25 bps. EUR/USD rallied heading into the midweek after kicking off the trading week with a bearish pullback. Still, the pair is getting buoyed by Greenback weakness rather than any particularly bullish Euro flows.

The Dow Jones Industrial Average (DJIA) ground its way into another record bid on Tuesday, but price action remains tepid and intraday momentum is struggling to outpace the 42,000 level. The CB Consumer Confidence Index for September dropped to the bottom end of a familiar two-year range, and Federal Reserve (Fed) Governor Michelle Bowman has leaned into her dissent of the Fed’s recent 50-bps rate cut. Consumer confidence deteriorated across the board on Tuesday, and consumer expectations of 12-month inflation accelerated to 5.2%. Consumers also reported a general weakening of their six-month family financial situation outlook, and consumer assessments of overall business conditions have turned negative.

The Dow Jones Industrial Average (DJIA) ground its way into another record bid on Tuesday, but price action remains tepid and intraday momentum is struggling to outpace the 42,000 level. The CB Consumer Confidence Index for September dropped to the bottom end of a familiar two-year range, and Federal Reserve (Fed) Governor Michelle Bowman has leaned into her dissent of the Fed’s recent 50-bps rate cut. Consumer confidence deteriorated across the board on Tuesday, and consumer expectations of 12-month inflation accelerated to 5.2%. Consumers also reported a general weakening of their six-month family financial situation outlook, and consumer assessments of overall business conditions have turned negative.

1、European Central Bank Managing Director Norte stated on Tuesday that the ECB may continue to cut interest rates until at least the first half of 2025, lowering rates to 2% -3%. 2、Bank of Canada Governor MacLehose stated that it is reasonable to expect further cuts in policy rates as progress continues to be made on inflation. 3、The Federal Reserve's overnight reverse repurchase agreement (RRP) usage scale on Tuesday was $388.977 billion. 4、The USDCNH is breaking through the 7.01 mark and reaching a 16 month high.

1、European Central Bank Managing Director Norte stated on Tuesday that the ECB may continue to cut interest rates until at least the first half of 2025, lowering rates to 2% -3%. 2、Bank of Canada Governor MacLehose stated that it is reasonable to expect further cuts in policy rates as progress continues to be made on inflation. 3、The Federal Reserve's overnight reverse repurchase agreement (RRP) usage scale on Tuesday was $388.977 billion. 4、The USDCNH is breaking through the 7.01 mark and reaching a 16 month high.

Sept 13 (Reuters) - Gold market bulls are locking in bullion prices surging to fresh records, with a milestone of $3,000 per ounce coming into focus, fired up by monetary easing

Sept 13 (Reuters) - Gold market bulls are locking in bullion prices surging to fresh records, with a milestone of $3,000 per ounce coming into focus, fired up by monetary easing

GBP/USD extended the ongoing Pound Sterling rally for another consecutive day, crossing the 1.3400 handle and chalking in fresh 30-month highs after the US Dollar broadly weakened on Tuesday. The Greenback’s market-wide withering gave Cable exactly what it needed to keep the current Pound Sterling bull run on-balance. Wednesday will be a quiet showing for the Pound Sterling on the data docket, although GBP traders will be keeping one eye out for statements from Bank of England (BoE) Monetary Policy Committee (MPC) member Megan Greene. MPC Member Greene will be speaking at the North East Chamber of Commerce in England.

GBP/USD extended the ongoing Pound Sterling rally for another consecutive day, crossing the 1.3400 handle and chalking in fresh 30-month highs after the US Dollar broadly weakened on Tuesday. The Greenback’s market-wide withering gave Cable exactly what it needed to keep the current Pound Sterling bull run on-balance. Wednesday will be a quiet showing for the Pound Sterling on the data docket, although GBP traders will be keeping one eye out for statements from Bank of England (BoE) Monetary Policy Committee (MPC) member Megan Greene. MPC Member Greene will be speaking at the North East Chamber of Commerce in England.

Bitcoin traded around $63,600 on Tuesday, as prices appear to be consolidating within the $62,000 and $64,700 key levels. On-chain data shows that the consolidation may be due to profit-taking by holders and mild Bitcoin ETF net inflows of $4.5 million, per Farside Investors data. Bitcoin holds steady above $62,000 amid profit-taking and mild decline in institutional demand Bitcoin (BTC) trades around $63,800 on Tuesday, consolidating within the $62,000 and $64,700 key levels. At the same time, on-chain data indicates short-term consolidation due to profit-taking by holders, mild spot BTC Exchange Traded Funds (ETF) inflows, and weakening spot buying pressure.

Bitcoin traded around $63,600 on Tuesday, as prices appear to be consolidating within the $62,000 and $64,700 key levels. On-chain data shows that the consolidation may be due to profit-taking by holders and mild Bitcoin ETF net inflows of $4.5 million, per Farside Investors data. Bitcoin holds steady above $62,000 amid profit-taking and mild decline in institutional demand Bitcoin (BTC) trades around $63,800 on Tuesday, consolidating within the $62,000 and $64,700 key levels. At the same time, on-chain data indicates short-term consolidation due to profit-taking by holders, mild spot BTC Exchange Traded Funds (ETF) inflows, and weakening spot buying pressure.

The Mexican Peso advanced against the US Dollar during the North American session after the Conference Board (CB) revealed that Consumer Confidence in the United States (US) deteriorated. Meanwhile, Mexican inflation dipped below estimates ahead of Thursday's Bank of Mexico (Banxico) monetary policy meeting. At the time of writing, the USD/MXN trades at 19.36, dropping over 0.28%. Mexico’s inflation in the first half of September dipped in MoM and YoY figures, according to the Instituto Nacional de Estadistica Geografia e Informatica (INEGI). Core numbers edged lower after being above the 5% threshold and improved compared to the previous reading.

The Mexican Peso advanced against the US Dollar during the North American session after the Conference Board (CB) revealed that Consumer Confidence in the United States (US) deteriorated. Meanwhile, Mexican inflation dipped below estimates ahead of Thursday's Bank of Mexico (Banxico) monetary policy meeting. At the time of writing, the USD/MXN trades at 19.36, dropping over 0.28%. Mexico’s inflation in the first half of September dipped in MoM and YoY figures, according to the Instituto Nacional de Estadistica Geografia e Informatica (INEGI). Core numbers edged lower after being above the 5% threshold and improved compared to the previous reading.

Business Live TV Markets DOW 42,208.22 0.20% S&P 500 5,732.93 0.25% NASDAQ 18,074.52 0.56% Fear & Greed Index 66 Business / Economy Why gold prices are at record highs By John Towfighi, CNN 4 minute read Published 2:01 PM EDT, Tue April 9, 2024 Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. David Gray/Bloomberg/Getty Images New York CNN — From central banks to Costco customers, it seems everyone is buying gold these days. The price of spot gold reached $2,364 per ounce Tuesday after hitting record highs for seven straight sessions and trading at $2,336 per ounce Monday. Year on year, gold is up 16.5%. Investors who expect the Federal Reserve to cut its benchmark interest rate are the main force driving up prices, but the surge is boosted by other factors, including central banks — led by China — buying up gold to ease reliance on US dollars. Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. Gold is considered a resilient investment. When interest rates fall, gold prices tend to rise, as bullion becomes more appealing than income-paying assets like bonds. Investors also regard gold as a hedge against inflation, betting bullion will retain its value when prices rise.

Business Live TV Markets DOW 42,208.22 0.20% S&P 500 5,732.93 0.25% NASDAQ 18,074.52 0.56% Fear & Greed Index 66 Business / Economy Why gold prices are at record highs By John Towfighi, CNN 4 minute read Published 2:01 PM EDT, Tue April 9, 2024 Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. David Gray/Bloomberg/Getty Images New York CNN — From central banks to Costco customers, it seems everyone is buying gold these days. The price of spot gold reached $2,364 per ounce Tuesday after hitting record highs for seven straight sessions and trading at $2,336 per ounce Monday. Year on year, gold is up 16.5%. Investors who expect the Federal Reserve to cut its benchmark interest rate are the main force driving up prices, but the surge is boosted by other factors, including central banks — led by China — buying up gold to ease reliance on US dollars. Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil. Gold is considered a resilient investment. When interest rates fall, gold prices tend to rise, as bullion becomes more appealing than income-paying assets like bonds. Investors also regard gold as a hedge against inflation, betting bullion will retain its value when prices rise.

Visa (V) seriously slumped on Tuesday afternoon after reports that the US Department of Justice (DOJ) was intent on bringing an antitrust case against the payments giant for allegedly holding an illegal monopoly over the US debit card market. Visa is the worst-performing stock in the Dow Jones Industrial Average (DJIA) on Tuesday, down 5.5% at the time of writing. Visa contrasts sharply with Caterpillar (CAT), which has gained nearly as much in percentage terms as Visa has lost.

Visa (V) seriously slumped on Tuesday afternoon after reports that the US Department of Justice (DOJ) was intent on bringing an antitrust case against the payments giant for allegedly holding an illegal monopoly over the US debit card market. Visa is the worst-performing stock in the Dow Jones Industrial Average (DJIA) on Tuesday, down 5.5% at the time of writing. Visa contrasts sharply with Caterpillar (CAT), which has gained nearly as much in percentage terms as Visa has lost.

Gold miners caught bids as gold prices neared Friday’s all-time high. The bullion price has been climbing on the back of a weaker US dollar and expectations of lower interest rates. In the large end of town, Lendlease (ASX:LLC) rose 2% after selling its US East Coast construction operations to Consigli Building Group. The sale is expected to be financially neutral over two years, with the goal of simplifying operations and boosting profitability. Mineral Resources (ASX:MIN) rose over 1% after announcing its first gas and oil resource estimates for the Lockyer Gas and Erregulla Oil projects.

Gold miners caught bids as gold prices neared Friday’s all-time high. The bullion price has been climbing on the back of a weaker US dollar and expectations of lower interest rates. In the large end of town, Lendlease (ASX:LLC) rose 2% after selling its US East Coast construction operations to Consigli Building Group. The sale is expected to be financially neutral over two years, with the goal of simplifying operations and boosting profitability. Mineral Resources (ASX:MIN) rose over 1% after announcing its first gas and oil resource estimates for the Lockyer Gas and Erregulla Oil projects.

The AUD/USD pair rallied to near 0.6870 in Tuesday's North American session, producing a three-month high. The Aussie asset gained ground after China's massive stimulus boost to revive household spending, real estate demand, and economic growth. The Reserve Bank of Australia (RBA) held rates steady and maintained a hawkish posture, also adding to the Aussie’s gains. The Australian economic outlook is uncertain, but the RBA has taken a hawkish stance due to high inflation. As a result, markets are now expecting only a 0.25% interest rate cut in 2024. This is a significant change from previous expectations, which included a series of rate cuts. The RBA's decision to adopt a hawkish stance has dampened market sentiment and led to a decrease in inflation expectations.

The AUD/USD pair rallied to near 0.6870 in Tuesday's North American session, producing a three-month high. The Aussie asset gained ground after China's massive stimulus boost to revive household spending, real estate demand, and economic growth. The Reserve Bank of Australia (RBA) held rates steady and maintained a hawkish posture, also adding to the Aussie’s gains. The Australian economic outlook is uncertain, but the RBA has taken a hawkish stance due to high inflation. As a result, markets are now expecting only a 0.25% interest rate cut in 2024. This is a significant change from previous expectations, which included a series of rate cuts. The RBA's decision to adopt a hawkish stance has dampened market sentiment and led to a decrease in inflation expectations.

On Tuesday, the NZD/USD pair rose sharply, gaining more than 1% and moving to 0.6340, levels not seen since December of 2023. The Relative Strength Index (RSI) is currently at 70, in the overbought zone. Looking at the Moving Average Convergence Divergence (MACD) confirms these conditions, printing rising green bars. However, traders should remain vigilant for a potential reversal as the upward movements may be over-extended and a consolidation might be necessary. The pair maintains a bullish outlook, trading above its major moving averages and holding strong at support levels of 0.6200, 0.6180, and 0.6150. On the upside, resistance lies at 0.6280, 0.6300, and 0.6310. If the pair manages to close above 0.6280, it could signal further upward momentum, with the next target set around early September highs near 0.6300. Breaking through these resistance points with solid trading volume may strengthen the bullish case.

On Tuesday, the NZD/USD pair rose sharply, gaining more than 1% and moving to 0.6340, levels not seen since December of 2023. The Relative Strength Index (RSI) is currently at 70, in the overbought zone. Looking at the Moving Average Convergence Divergence (MACD) confirms these conditions, printing rising green bars. However, traders should remain vigilant for a potential reversal as the upward movements may be over-extended and a consolidation might be necessary. The pair maintains a bullish outlook, trading above its major moving averages and holding strong at support levels of 0.6200, 0.6180, and 0.6150. On the upside, resistance lies at 0.6280, 0.6300, and 0.6310. If the pair manages to close above 0.6280, it could signal further upward momentum, with the next target set around early September highs near 0.6300. Breaking through these resistance points with solid trading volume may strengthen the bullish case.

As the 2024 Presidential election in the U.S. draws near and the debate rages about which candidate will be better for financial markets, one billionaire investor has warned about the negative effect a Harris administration would have on asset prices and threatened to pull his funds from the market if she becomes the next president. “It depends on the policy; if Harris is elected, I would pull my money from the market,” said billionaire hedge fund manager John Paulson during a Tuesday appearance on Fox Business’ ‘The Claman Countdown.’ “I’d go into cash, and I’d go into gold because I think the uncertainty regarding the plans they outlined would create a lot of uncertainty in the markets and likely lower markets,” Paulson added.

As the 2024 Presidential election in the U.S. draws near and the debate rages about which candidate will be better for financial markets, one billionaire investor has warned about the negative effect a Harris administration would have on asset prices and threatened to pull his funds from the market if she becomes the next president. “It depends on the policy; if Harris is elected, I would pull my money from the market,” said billionaire hedge fund manager John Paulson during a Tuesday appearance on Fox Business’ ‘The Claman Countdown.’ “I’d go into cash, and I’d go into gold because I think the uncertainty regarding the plans they outlined would create a lot of uncertainty in the markets and likely lower markets,” Paulson added.

Silver price skyrocketed during Tuesday’s North American session and hit a four-month high of $32.26, posting gains of over 4% as the grey metal extended its rally sponsored by a drop in US Treasury yields and a weak US Dollar. The XAG/USD trades at $32.12 as Wednesday’s Asian session begins. XAG/USD Price Forecast: Technical outlook Silver is upward biased and is set to continue climbing to challenge the year-to-date (YTD) high of $32.51. The Relative Strength Index (RSI) is aiming higher after peaking on Monday, indicating that bulls are stepping in. if XAG/USD stays above $32.00 and punches through the $32.26 September 24 high, that could pave the way for the YTD high. Once surpassed, the next stop would be the $33.00 mark, ahead of the October 1, 2012 high at $35.40 On the other hand, if XAG/USD falls below $32.00, the next support would be the September 20 daily high at $31.44, before testing $31.00.

Silver price skyrocketed during Tuesday’s North American session and hit a four-month high of $32.26, posting gains of over 4% as the grey metal extended its rally sponsored by a drop in US Treasury yields and a weak US Dollar. The XAG/USD trades at $32.12 as Wednesday’s Asian session begins. XAG/USD Price Forecast: Technical outlook Silver is upward biased and is set to continue climbing to challenge the year-to-date (YTD) high of $32.51. The Relative Strength Index (RSI) is aiming higher after peaking on Monday, indicating that bulls are stepping in. if XAG/USD stays above $32.00 and punches through the $32.26 September 24 high, that could pave the way for the YTD high. Once surpassed, the next stop would be the $33.00 mark, ahead of the October 1, 2012 high at $35.40 On the other hand, if XAG/USD falls below $32.00, the next support would be the September 20 daily high at $31.44, before testing $31.00.