XAGUSD Analysis: December 20, 2023

XAGUSD Analysis

XAGUSD Analysis – In December, the price of silver stayed around $24 for each ounce. This happened as people investing watched closely what the central banks might do next and what their leaders were saying. It looks like the Federal Reserve might stop making money tighter and could lower interest rates in 2024. Many believe the first cut could be in March. Meanwhile, the European Central Bank and the Bank of England are not rushing to make money easier to get. They’re keeping their rates the same.

Over in Japan, their bank didn’t change its approach and didn’t share any plans for the future. When interest rates go down, silver becomes more attractive because it doesn’t earn interest. This also helps its use in making things. Plus, silver is still in high demand and there’s not enough of it. The supply can’t keep up with how much people want. Experts think there will be a big shortage in 2023, about 140 million ounces short.

XAGUSD Analysis

XAGUSD Analysis – 4H Chart

Source Reuters.