Silver bears are back on the prowl with the price falling down below the weekly support line, making over a 38.2% Fibonacci retracement.
Trading between $25.16 and $25.20, the white metal is now developing a bearish head and shoulders in the four-hour time frame, indicating that the bullish trend has reached its apex and is poised for a fall downwards in the coming week.
On the other hand, the yellow metal is showing a bullish reverse head and shoulders on both weekly and monthly charts. Despite retreating US Treasury yields, Gold price is bouncing back from its downfall below the $1800 psychological mark. Experts opine that gold still remains at risk against continued increase in real rates as inflation and nominal rates normalize.
US Dollar that exercises a strong influence on both Gold and Silver prices struggled a bit as DXY slipped below the 93.00 mark. This is seen as the direct effect of improving risk sentiments among the market players. Investors were seen moving to riskier assets in Wall Street indicating improved business performance.
EUR/USD bettered its position from previous week’s performance, moving 0.01% up on Monday morning’s Asian session. The pair is staying steady above 1.1750 and all eyes are on upcoming FOMC report this week.