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Gold prices rise after 3 weeks of decline

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Kroger shares fall despite Q1 sales beat

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JPY gains versus USD on strong trade data

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US dollar gains ahead of central bank meetings

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Gold surges after US-Iran peace deal

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Asset Watch

Will silver lose support?

Tuesday, May 16, 2023

Despite making higher highs and higher lows since September 2022, a resurgent U.S. dollar spoiled silver’s party last week. And with the white metal on the precipice of a breakdown, the bulls’ mettle could be tested in the days and weeks ahead.
Silver declined by nearly 5% on May 11 and followed that up with a more than 1% decline on May 12. Yet, it managed to bounce off its 50-day moving average, which halted the intraday slide below $24. However, a similar drama unfolded in early 2023 before a real sell-off occurred.
The candlesticks on the left side of the chart show how intraday rallies off the 50-day MA kept silver afloat for a couple of weeks. But, when high-volume declines occurred near the 50-day MA, a breakdown occurred, and the white metal was stuck in a downtrend for more than a month.

The grey arrow on the right side of the chart shows how silver’s May 11 plunge occurred in high volume, which may signal trouble ahead. As a result, monitoring its behaviour around the 50-day MA is paramount, and if the bulls can’t defend the key level, a descent toward the 200-day MA ($21.83) may be next in line.

 

So, will a crisis of confidence confront silver, or is this simply a correction within a medium-term bull market?


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