Silver (XAG/USD) holds gains near $66.00 on further Fed easing hopes

LONDON (December 17) Silver’s (XAG/USD) is standing comfortably at the upper range of the $65.00s on Wednesday’s European session, after having hit fresh all-time highs at $66.54 earlier today as delayed US labour figures failed to boost confidence in the US economy.

Nonfarm Payroll figures released on Tuesday revealed that net employment fell by 105,000 in October before posting a larger-than-expected recovery, with a 64,000 increase in November. The Unemployment rate, however, rose to a four-year high of 4.6% wage growth moderated further.

These figures kept bets of a March rate cut practically unchanged, at 42%, and investors are now waiting for the release of November's US Consumer Prices Index, due on Friday, for a better assessment of the Fed's monetary easing calendar.

Technical Analysis: Trendline resistance at $66.80 might cp bulls

The 4-hour chart shows the XAG/USD pair trading at $65.97, nearly 3.5% above the day's opening price. The rising trend line from $48.57 lows in mid-November underpins the bullish bias, offering support near $63.12.

The Moving Average Convergence Divergence (MACD) turns positive with a widening histogram, suggesting strengthening upside pressure. The Relative Strength Index (RSI) stands at 69.62, close to overbought and hinting that upside could slow.

The top of the ascending channel, in the $66.80 area, is likely to challenge bulls. Further up, the next target is the 261.8% Fibonacci extension of the October-November rally, at $68.30, and the 70.00 level.

To the downside, immediate support is at the previous all-time high, of $64.72, followed by trendline support, near $63.30, and the December 12 low, near $60.80.

FXStreet