XAGUSD Analysis: December 21, 2023

XAGUSD Analysis

XAGUSD Analysis – In December, silver prices stayed close to $24 per ounce. Investors were looking closely at what central banks might do next and what their officials were saying. The Federal Reserve is probably done raising rates and might start cutting them in 2024. Many traders think the first cut could be in March. Meanwhile, the European Central Bank and the BoE (Bank of England) are not greedy to ease their policies. They also did not change their rates.

The Bank of Japan also kept its policy the same and didn’t give any hints about the future. Lower interest rates make silver more attractive since it doesn’t earn interest. This also means better chances for using silver in industries. Plus, the metal is getting a boost because production is low while demand stays higher. In 2023, the silver market is expected to have a shortfall of 140 million ounces (4354 tonnes).

XAGUSD Analysis

XAGUSD Analysis – 4H Chart