Silver Price News: XAG/USD recovery appears elusive below $22.00, Fed Minutes eyed
NEW YORK (Feb 16) Silver price (XAG/USD) retreats from intraday high but remains mildly bid near $21.70 during the early hours of Thursday’s European session.
The bright metal’s latest pullback, which marks the first daily loss in four, could be the resettlement of the previous bias as Western traders return to their desks. However, a lack of major data/events joins the cautious optimism backed by Chinese news to put a floor under the XAG/USD price.
The risk profile, however, improves as Chinese President Xi Jinping shows readiness to deepen industrial and investment cooperation with Asia. On the same line were the upbeat comments from Chinese Finance Minister Liu Kun who said that the 2023 fiscal revenue will grow this year, though the growth rate will not be too high, per the Chinese state media.
It should be noted that the strong US data bolstered the hawkish Fed bias and weighed on the Silver price to print a 10-week low the previous day. Among the key data, US Retail Sales for January and the NY Empire State Manufacturing Index for February gained major attention. Following the data, the market’s bets on the Fed’s next moves, as per the FEDWATCH tool of Reuters, suggest the US central bank’s benchmark rate is to peak in July around 5.25% versus the December Federal Reserve prediction of 5.10% top rate.
Amid these plays, the S&P 500 Futures print mild gains around 4,165 while extending the previous day’s gains whereas the US 10-year Treasury bond yields retreat following the run-up to a 1.5-month high marked on Wednesday, down two basis points to near 3.78% by the press time. Further, the US Dollar Index (DXY) prints 0.15% intraday loss while easing to 103.70 at the latest, after rising to the 1.5-month high the previous day.
Given the light calendar for the day and the week, the Silver price may remain depressed while the second-tier US data concerning the housing market, industrial activity and producer prices can entertain traders. However, major attention will be given to the next week’s Minutes of the latest Federal Open Market Committee (FOMC) monetary policy meeting.
FXStreet