Silver prices corrected sharply after reaching a record high of around $121,643, falling to a low of $73,327. Strong profit-taking to secure profits has led to a sharp decline in silver prices. Long positions finally hit their stop-loss positions in profit. While somewhat disappointing, it was the initial scenario to place a stop-loss order in profit.
The market is mostly sideways, with silver's movement on the M15 timeframe showing prices within a narrow range within a Bollinger band squeeze. However, I believe silver could rise again amid potential geopolitical risk premiums in the Middle East, particularly in the US and Iran.
Gold prices fell on the hourly timeframe, indicating a bearish trend. The US dollar index appears to have stabilized after Trump appointed his replacement as Fed Chair. Kevin Warsh is considered a figure who supports USD strength and could dispel rumors of the Fed's independence. However, geopolitical risks continue to support gold and silver.
Technically, the AUDUSD pair is currently at its daily historical high. If this level is broken, it may rise, seeking the next resistance target. However, the USD's current dynamics tend to be volatile, with some signs of strengthening. Here, I'm attempting a sell position with a stop-loss and profit target.
Sanae Takaichi's victory in the Japanese election, bringing political stability and supporting the JPY, in addition to reports of Chinese banks reducing their holdings of US Treasuries, could weigh on the USD.
Yesterday's NFP data released showed actual data that exceeded expectations. The USD briefly strengthened, but then returned to normal. The USD/JPY pair is currently near the middle band, suggesting bearish sentiment. Consider shorting in this area.
The GBPUSD pair has been trading sideways for the past week, moving within a range near the middle band. The USD has recently stabilized despite cooling inflation, but the market still hopes the Fed won't cut interest rates too quickly. Amidst uncertainty, wait and see before speculating. Wait for new news and for the price to be near the top or bottom of the market's range.
The Australian dollar fell yesterday after the FOMC minutes, with the Fed expected to hold interest rates unchanged. However, a cut is still expected amidst declining inflation. The RBA's hawkish stance is expected to support the AUD today.
Geopolitical tensions between the US and Iran could fuel demand for safe-haven assets like gold and silver. If a deal fails and a military confrontation erupts, silver could surge again.
GBP/JPY rose for two consecutive days, in line with comments from the Japanese Prime Minister concerning the rapid pace of interest rate hikes. Despite uncertain UK economic data, the weakening JPY supported GBP/JPY's gains. Consider placing a pending buy limit order on this cross pair.
