Silver price (XAGUSD) rose on Tuesday as the rebound from recent lows continues supported by monetary and fiscal measures from central banks and governments around the globe. FED yesterday stepped in with more aggressive measures to combat the coronavirus outbreak impact on the business and economy.
Fed will purchase $250 billion in MBS this week and also will buy $375 billion in Treasuries. Fed will relaunch TALF to support the consumer and business debt and will create two facilities to support the corporate debt markets. Fed also announced that they would buy corporate bonds for the first time. RBA will buy up to $2.35 billion in government bonds, while Germany government signed a package worth up to $808 billion.
Now there are 381,000 confirmed coronavirus cases around the globe while there are 16,500 deaths. 101,000 patients have recovered. China also announced the lift of lockdown in Wuhan on April 8. The UK is the latest country to implement the stay at home policy.
The silver price is 3.53% higher at 13.65, making fresh weekly highs as the rebound is intact for the fourth consecutive trading session. The technical picture is bearish for silver despite the recent rebound, so traders must be cautious as the recent rebound might be just a dead cat bounce.
On the upside, the first obsatcle for the silver price will be met at $14.10 the daily top. If silver price breaks above, the next resistance to watch is at $15.05 the high from March 16th session. The next resistance stands at $15.85 the high from March 13th.
On the other side, initial support for the silver price will be met at $13.14 the daily low. Next support zone stands at $12.25 the low from yesterday’s trading session. More bids might emerge at $11.98 the low from March 20th.