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US President Donald Trump arrived in Beijing for a state visit to China, where he will meet with Chinese President Xi Jinping to discuss topics including trade and the Iran war, Bloomberg reported on Wednesday. This is the first state visit to China by a US leader in nine years.
Ahead of his arrival, Trump and other administration officials indicated that he intended to use the meeting as an opportunity to press the Chinese leader on many subjects, such as Beijing’s role in the unresolved Middle East conflict to rolling back trade barriers for US businesses.
Market reaction
At the time of writing, the AUD/USD pair is down 0.04% on the day at 0.7255.
US-China Trade War FAQs
Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living.
An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies.
The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.
- Gold price drifts higher to around $4,700 in Thursday’s early Asian session.
- Trump arrived in Beijing, where he will meet with Xi Jinping to discuss topics including trade and the Iran war.
- US wholesale inflation accelerated at its fastest annual pace in four years.
Gold price (XAU/USD) trades in positive territory near $4,700 during the early Asian session on Thursday. The precious metal edges higher as markets turn cautious ahead of the US President Donald Trump-Chinese President Xi Jinping summit in Beijing. The US April Retail Sales report will also be in the spotlight later on Thursday.
Bloomberg reported late Wednesday that Trump arrived in Beijing for the first state visit to China by a US leader in nine years, as the world’s two largest economies look to stabilize ties with a summit playing out against the backdrop of the Iran war.
The United States (US) and China are considering a framework that would allow each nation to identify some $30 billion in goods on which tariffs could be reduced without threatening national security interests.
Data released by the US Bureau of Labor Statistics on Wednesday showed that the US Producer Price Index (PPI) jumped by 6.0% YoY in April, following the 4.3% seen in March. This figure came in hotter than the expectation of 4.9%. On a monthly basis, the PPI inflation rose to 1.4% in April from 0.7% in March, and was much higher than the anticipated 0.5%.
Wholesale inflation hit its highest since December 2022, driven by surging oil prices linked to tensions in the Middle East. This report has reinforced market expectations that the US Federal Reserve (Fed) will maintain elevated interest rates to combat persistent inflationary pressures, which could weigh on the yellow metal. It’s worth noting that Gold is often used amid geopolitical uncertainty but does not yield interest, making it less attractive when interest rates are high.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
- GBP/JPY holds above 50-day SMA as 213.50 caps upside.
- RSI flat near 50 shows buyers and sellers remain balanced.
- Break above 214.00 exposes 214.43 and 215.00 resistance levels.
The GBP/JPY hovers around 213.50 on Wednesday, finishing the session barely unchanged, up a mediocre 0.04% as the Yen weakened against most G10 FX currencies. Sellers' failure to drive the cross-pair below the 50-day Simple Moving Average (SMA) at 213.16 opened the door for a recovery, with buyers eyeing the 214.00 mark.
GBP/JPY Price Forecast: Technical outlook
Following the April 30 intervention, the GBP/JPY bottomed around 210.00-212.00, with buyers pushing the spot price past the 50-day SMA but capped on the upside by the psychological 213.50 level.
The Relative Strength Index (RSI) shows that neither buyers nor sellers are in control, with the indicator flat around the 50 neutral level.
Above, the first resistance for GBP/JPY is at 214.00. A breach of the latter exposes the May 11 daily high of 214.43, followed by the 215.00 psychological level. Once cleared, overhead lies the year-to-date (YTD) high at 216.60.
For a bearish resumption, GBP/JPY must drop below the 50-day SMA and also clear the 213.00 mark. Below, the next area of interest is the 100-day SMA at 212.19, before the pair extended its losses towards the May 6 swing low at 210.76.
GBP/JPY Price Chart – Daily
Japanese Yen Price This week
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.26% | 0.20% | 0.74% | 0.18% | -0.51% | 0.03% | 0.47% | |
| EUR | -0.26% | -0.07% | 0.55% | -0.10% | -0.79% | -0.25% | 0.20% | |
| GBP | -0.20% | 0.07% | 0.11% | -0.05% | -0.74% | -0.19% | 0.26% | |
| JPY | -0.74% | -0.55% | -0.11% | -0.63% | -1.27% | -0.72% | -0.25% | |
| CAD | -0.18% | 0.10% | 0.05% | 0.63% | -0.58% | -0.08% | 0.29% | |
| AUD | 0.51% | 0.79% | 0.74% | 1.27% | 0.58% | 0.55% | 0.98% | |
| NZD | -0.03% | 0.25% | 0.19% | 0.72% | 0.08% | -0.55% | 0.43% | |
| CHF | -0.47% | -0.20% | -0.26% | 0.25% | -0.29% | -0.98% | -0.43% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
- Over 80 Labour MPs pushed for PM Starmer's resignation after poor local elections, raising UK fiscal spending fears.
- US PPI rose 1.4% MoM in April against a 0.5% consensus, weighing on risk appetite and lifting the US Dollar.
- Thursday's first-quarter UK GDP is the next major catalyst for Pound Sterling.
GBP/USD ended Wednesday little changed on a net basis, though the session included a sharp intraday swing of around 65 pips. The pair climbed through London hours before an aggressive reversal into the US session pressed it to the day's low; a recovery through the New York afternoon left price near the opening level, extending the pullback from last week's multi-week highs.
Political uncertainty in the United Kingdom continued to pressure Pound Sterling, with more than 80 Labour members of parliament having called for Prime Minister Keir Starmer to step down following the party's poor local election results. Investors are concerned that a leadership change could lead to looser fiscal policy to regain voter support, adding to the United Kingdom's already elevated borrowing pressures; the International Monetary Fund (IMF) recently cut its UK growth forecast for 2026 from 1.3% to 0.8%. Thursday's first-quarter gross domestic product (GDP) release is the key upcoming event for Pound Sterling, with the data likely to sharpen market views on the fiscal and monetary policy outlook into the second half of the year.
US Producer Price Index (PPI) data for April delivered a sharp beat, with the headline MoM print at 1.4% against a 0.5% consensus and the YoY rate jumping to 6.0%, well above the 4.9% forecast; core PPI excluding food and energy rose 1.0% MoM against a 0.3% estimate. The hot figures reinforced expectations that US inflation, already elevated by energy price pass-through from the Iran conflict, is broadening into wider channels, lending support to the US Dollar and compressing risk appetite. US retail sales and initial jobless claims on Thursday will provide the next read on US economic momentum.
GBP/USD 15-minute chart
Technical Analysis
In the fifteen-minute chart, GBP/USD trades at 1.3528, holding below the daily open at 1.3538, which keeps the near-term tone mildly bearish as intraday rallies struggle to reclaim that reference point. The Stochastic RSI at 72.24 sits in overbought territory, hinting that upside momentum is stretching and could leave the pair vulnerable to renewed selling if buyers fail to drive a sustained move back over the daily open.
On the topside, initial resistance is located at the day’s open around 1.3538, and a clear break above this level would be needed to ease immediate downside pressure and allow a deeper recovery. With no nearby structural supports from the provided data, any pullback from current levels would likely leave traders watching for fresh price action levels to emerge below 1.3528 to gauge where demand might reappear.
In the four-hour chart, GBP/USD trades at 1.3528. The pair holds a mildly bullish near-term bias as it trades above the 200-period exponential moving average (EMA) at 1.3504, suggesting underlying demand persists despite the recent pullback from higher highs. The Stochastic RSI has dropped toward the mid-teens, hinting that downside momentum could be fading as price consolidates above this key dynamic support.
On the downside, initial support is aligned with the 200-period EMA at 1.3504, with a break below this zone likely exposing the recent lows near the mid-1.35 area. With no nearby technical resistance levels provided by moving averages or Fibonacci retracements, any recovery is likely to be shaped by how firmly buyers can defend the 1.3500–1.3505 band, while a sustained close back under the EMA would undermine the current constructive tone on the four-hour chart.
(The technical analysis of this story was written with the help of an AI tool.)
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
- The RBNZ's Q2 inflation expectations survey jumped to 2.53% from 2.37% in Q1, the largest quarterly rise in over a year.
- US PPI surged 1.4% MoM in April against a 0.5% consensus, pushing the YoY rate to 6% and reversing the session rally.
- Thursday's Business NZ PMI and US retail sales data are the next scheduled catalysts for NZD/USD.
NZD/USD ended Wednesday virtually flat, though the session produced a sharp two-way range of close to 50 pips. The pair spiked to the session high in early Asia-Pacific hours before selling off hard through New York trade to the day's low; a partial recovery into the close left price consolidating near the lower portion of the intraday range.
The Reserve Bank of New Zealand's (RBNZ) second-quarter inflation expectations survey printed at 2.53%, up from 2.37% in the first quarter, the sharpest quarterly increase in over a year. The result suggests that oil-driven cost pressures from the ongoing US-Iran conflict are feeding into longer-horizon domestic price expectations, keeping the inflation narrative firmly in focus. Thursday's Business NZ Purchasing Managers Index (PMI) for April, with the prior reading at 53.2, is the next scheduled local catalyst.
US Producer Price Index (PPI) data for April showed the headline MoM print at 1.4%, more than double the 0.5% consensus, while the YoY rate jumped to 6.0% against a 4.9% forecast; core PPI excluding food and energy rose 1.0% MoM against a 0.3% estimate. The broad beat reinforced the narrative that energy-driven inflation is spreading into wider price channels, sending the US Dollar higher and erasing the earlier gains across risk-sensitive pairs. The Strait of Hormuz remains effectively closed, and US President Donald Trump described Iran's latest ceasefire response as unacceptable, with Brent crude holding above US$105 a barrel. US retail sales and initial jobless claims on Thursday are the next significant data points.
NZD/USD 15-minute chart
Technical Analysis
In the fifteen-minute chart, NZD/USD trades at 0.5936, holding below the day’s open at 0.5952, which keeps the near-term tone mildly bearish as intraday rallies remain capped beneath that reference. The latest Stochastic RSI reading has eased back toward mid-range levels, suggesting fading upside momentum after earlier overbought signals and leaving the pair vulnerable while it fails to reclaim the opening pivot.
On the topside, the day open at 0.5952 is the immediate resistance that bulls would need to clear to alleviate the current pressure and open the way for a deeper recovery. On the downside, the absence of nearby structural supports on this timeframe means any renewed selling could quickly extend toward lower intraday lows, with momentum gauges hinting that sellers could regain control if 0.5936 gives way decisively.
In the four-hour chart, NZD/USD trades at 0.5936. The pair holds above the 200-period Exponential Moving Average (EMA) at 0.5896, keeping the broader short-term tone constructive despite the recent pullback from this week’s highs. With price still supported by this long-term trend indicator, the setback looks more like consolidation within an underlying uptrend rather than a directional reversal.
On the downside, the 200-period EMA at 0.5896 forms initial key support; a sustained break beneath this floor would undermine the current bullish bias and expose a deeper correction. Momentum-wise, the Stochastic RSI has dropped toward oversold territory near 15, hinting that bearish pressure could be losing steam and that dip-buying interest may re-emerge while the pair holds above the EMA support.
(The technical analysis of this story was written with the help of an AI tool.)
New Zealand Dollar FAQs
The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s central bank policy. Still, there are some unique particularities that also can make NZD move. The performance of the Chinese economy tends to move the Kiwi because China is New Zealand’s biggest trading partner. Bad news for the Chinese economy likely means less New Zealand exports to the country, hitting the economy and thus its currency. Another factor moving NZD is dairy prices as the dairy industry is New Zealand’s main export. High dairy prices boost export income, contributing positively to the economy and thus to the NZD.
The Reserve Bank of New Zealand (RBNZ) aims to achieve and maintain an inflation rate between 1% and 3% over the medium term, with a focus to keep it near the 2% mid-point. To this end, the bank sets an appropriate level of interest rates. When inflation is too high, the RBNZ will increase interest rates to cool the economy, but the move will also make bond yields higher, increasing investors’ appeal to invest in the country and thus boosting NZD. On the contrary, lower interest rates tend to weaken NZD. The so-called rate differential, or how rates in New Zealand are or are expected to be compared to the ones set by the US Federal Reserve, can also play a key role in moving the NZD/USD pair.
Macroeconomic data releases in New Zealand are key to assess the state of the economy and can impact the New Zealand Dollar’s (NZD) valuation. A strong economy, based on high economic growth, low unemployment and high confidence is good for NZD. High economic growth attracts foreign investment and may encourage the Reserve Bank of New Zealand to increase interest rates, if this economic strength comes together with elevated inflation. Conversely, if economic data is weak, NZD is likely to depreciate.
The New Zealand Dollar (NZD) tends to strengthen during risk-on periods, or when investors perceive that broader market risks are low and are optimistic about growth. This tends to lead to a more favorable outlook for commodities and so-called ‘commodity currencies’ such as the Kiwi. Conversely, NZD tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
- The 2026/27 budget delivered a $31.5bn deficit, with major housing reforms and a $10bn fuel security package.
- Q1 WPI rose 0.8% QoQ as expected, with Thursday's consumer inflation expectations survey next in focus.
- US PPI surged 1.4% MoM in April against a 0.5% consensus, pushing the YoY rate to 6% and weighing on risk appetite.
AUD/USD gained roughly 0.3% on Wednesday, climbing through the session before peaking just below the recent cycle highs and pulling back into the close. The intraday structure traced a steady grind higher from the Asian open through New York trade, followed by a pullback from the day's peak that left the pair holding a net gain.
Australia's 2026/27 federal budget, delivered on Tuesday by Treasurer Jim Chalmers, posted an underlying cash deficit of A$31.5 billion for the year, modestly improved from mid-year projections. The headline policy measures included the scrapping of negative gearing and the replacement of the capital gains tax (CGT) discount with indexation, both grandfathered, alongside an A$10 billion fuel security package in direct response to the Iran-related supply shock. Wednesday's Wage Price Index (WPI) for the first quarter came in at 0.8% QoQ, matching both the consensus and the prior-period reading; the annual pace eased slightly but remained elevated. Thursday's consumer inflation expectations survey from the Melbourne Institute is the next scheduled domestic catalyst.
US Producer Price Index (PPI) data for April came in sharply higher than expected, with the headline MoM print at 1.4% against a 0.5% consensus and the YoY rate rising to 6.0%, well above the 4.9% forecast; core PPI excluding food and energy rose 1.0% MoM against a 0.3% estimate. The hot figures drove a surge in the US Dollar that reversed the session's advance before a partial recovery closed the gap. The broader backdrop continues to be shaped by the US-Iran conflict: the Strait of Hormuz remains effectively closed, keeping global energy prices elevated, and US President Donald Trump described Iran's latest ceasefire response as unacceptable. US retail sales and initial jobless claims on Thursday provide the next major USD-side inputs.
AUD/USD 15-minute chart
Technical Analysis
In the fifteen-minute chart, AUD/USD trades at 0.7258, holding a mild bullish bias as it stays above the day’s open at 0.7240. The price action suggests intraday dip-buying interest, even as the latest Stochastic RSI reading around 9.54 shows deeply oversold conditions that could limit immediate downside and favor a near-term bounce or consolidation rather than an outright reversal lower.
On the downside, initial support is aligned with the 0.7240 day-open level, where buyers are likely to defend the short-term up-move. With no nearby technical resistance levels highlighted by moving averages or other structures in this timeframe, the pair’s next topside hurdles are expected to emerge only as price extends higher, leaving short-term direction driven mainly by how spot reacts around the 0.7240 support zone.
In the four-hour chart, AUD/USD trades at 0.7258. The pair holds a constructive near-term bias as price trades well above the 200-period exponential moving average (EMA) at 0.7150, keeping the broader four-hour uptrend supported. The Stochastic RSI around 63 leans bullish without yet signaling overbought conditions, suggesting upside momentum is still present but not stretched.
On the downside, initial support is seen at the 0.7258 area as an immediate intraday pivot, with stronger structural demand emerging at the 200-period EMA near 0.7150, where buyers have room to defend the broader bullish structure. With no nearby technical resistance levels highlighted by the current setup, a sustained hold above these supports would keep the path of least resistance tilted to the upside while momentum remains constructive.
(The technical analysis of this story was written with the help of an AI tool.)
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
BNP Paribas explains that Thailand shifted from broad price freezes to targeted subsidies for vulnerable households and firms. While subsidies slow fiscal consolidation, Thailand’s government debt is mostly in local currency and held by residents, with a low interest burden, making it the least exposed among peers to a potential rise in US long-term interest rates.
Selective support and robust debt structure
"Meanwhile, Thailand, after leaving its prices unchanged in the early weeks of the conflict, has ultimately decided to target only the most vulnerable households and businesses by providing them with partial direct subsidies."
"India, like Indonesia, Malaysia and Thailand, has the capacity to absorb this new shock to its public finances."
"The country whose government is least exposed to these risks is Thailand, as its debt (64.2% of GDP) is almost exclusively denominated in domestic currency and held by residents, whilst its interest burden is low (6% of revenue)."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
OCBC’s Christopher Wong notes USD/SGD has risen with broader USD/AXJ but the move has been milder, reflecting Singapore Dollar's (SGD) lower beta. Wong observes fading bearish momentum and moderated RSI, suggesting two-way trade. Wong highlights nearby resistance around 1.2720–1.28 and support near 1.2650, maintaining a preference to sell rallies while acknowledging SGD’s sensitivity to external yields, Oil and sentiment.
Lower beta SGD in two-way consolidation
"USD/SGD rose, tracking broader USDAXJs higher."
"Move reflects SGD’s lower beta characteristics but at the same time, SGD is not immune to external developments, including yields, oil and sentiments."
"Mild bearish momentum on daily chart is fading but rise in RSI moderated."
"2-way trades still likely. Resistance at 1.2720/40 levels (21, DMA, 61.8% fibo retracement of 2026 low to high), 1.2770"
"Support at 1.2650/60 levels (76.4% fibo), 1.2610 levels. Bias to sell rallies preferred."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- Silver extends six-day rally, bulls eye $90 breakout zone.
- RSI approaches overbought territory, signaling strengthening upside momentum.
- Break below $83.06 would neutralize the bullish structure near-term.
Silver (XAG/USD) price extends its gains for the sixth consecutive day on Wednesday, up over 1.30%, despite US inflation might prevent the Federal Reserve (Fed) from cutting interest rates. This suggests that rates would be higher-for-longer, yet the white metal closes into the $90.00 figure, trading at $87.67 a troy ounce at the time of writing.
XAG/USD Price Forecast: Technical outlook
From a technical standpoint, XAG/USD is neutral to upward-biased, with buyers attempting to challenge the $89.50 area for the first time since mid-March. Nevertheless, they fell short, as the white metal peaked at around $89.38 before recoiling beneath $88.00.
Momentum remains bullish, as indicated by the Relative Strength Index (RSI), which is closing into overbought territory, suggesting that bulls are gaining traction.
Should XAG/USD clear $89.50, it would open the door to challenging $90.00. On further strength, the next stop would be the March 2 high of $96.62, ahead of $100.00.
On the bearish side, Silver would shift neutral if it drops below the April 17 daily peak, which has since turned into support at $83.06. Below this area, the next area of interest would be the 100-day Simple Moving Average (SMA) at $81.11, followed by the 20-day SMA at $77.76, ahead of the 50-day SMA at $77.09. Beneath this area, the next stop would be the $70.00 figure.
XAG/USD Price Chart – Daily
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
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