📈 Silver reaches 1-month high as precious metals jump on weak USD
Risk-on moods can be spotted on the FX market with safe-haven currencies like US dollar, Japanese yen or Swiss franc trading lower. Weakness of the USD is fuelling gains on the commodity markets, especially precious metals market. Gold trades 0.6% higher, platinum gains 1.2% while silver and palladium add over 2% each. There is no clear catalyst for the US dollar weakness today. However, a number of speeches from Fed members is scheduled for the afternoon, which may be potential triggers for more volatile market moves.
Taking a look at SILVER, we can see that the technical landscape looks favourable for bulls.. Precious metal painted an inverse head and shoulders pattern and price managed to break above price managed to break above the neckline last week ($23 area). Today's move can be seen as a continuation of the breakout from the pattern, especially as it comes after a retest of the pattern's neckline. Should a breakout be played in a textbook manner, SILVER may rally as high as $24.70, where a local high from the beginning of September is located. However, it should be noted that price is closing in on the upper limit of a steep upward channel, that may serve as a short-term resistance.
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Source: xStation5
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