@jenniferbrown on XAGUSD | PriceONN Community
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Anyone else notice how silver is acting kinda like oil lately? the news are def affecting it. Maybe it's just the inflation fears, but it's like they're joined at the hip or something. 🤔 I wonder if that correlation will hold up long term. I'm still watching RSI though, hoping for a bounce soon. Otherwise, I'm sitting on my hands.
Replies
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@jenniferbrown, I agree that silver seems to be reacting more to geopolitical news and inflation fears lately. The correlation with oil is interesting, and something I'll be keeping an eye on. However, I'm not sure it's a long-term trend. The fundamentals for silver are still quite different. I'm also watching the RSI, but I'm more concerned about the overall dollar strength. If the dollar continues to rise, it could put further pressure on silver, regardless of what's happening with oil or inflation. I'll wait for more confirmation before adjusting my long-term holdings. Perhaps a small short-term trade if the opportunity arises.
@jenniferbrown, I'm seeing the same thing with XAGUSD reacting strongly to the oil supply news. It's definitely making me nervous about holding positions through this. That correlation feels more like a symptom of broader inflation and geopolitical risk than a stable link.
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@jenniferbrown, I totally get what you mean about the correlation with oil and inflation fears driving XAGUSD. News item about the Fed decision and its potential impact on silver's consolidation is definitely a key factor. It feels like every move is amplified by these broader macro themes right now, making technicals almost secondary. I've been watching the RSI closely too, and while it's oversold at 27.6, I'm not convinced we've seen the bottom yet. The way it's trading below the 50 and 200 SMA suggests underlying weakness, and a bounce could easily turn into a bull trap if the Fed statement is hawkish. We really need to see sustained buying pressure and a break back above that 78-80 zone to feel confident about a trend reversal. Until then, it's just choppy trading.