Wood and Silver (XAG / USD) Are you ready for higher prices?

Lumber (Wood) Silver (XAG / USD) Outlook:

  • Timber prices on alert due to bad weather
  • Inflation and stimuli continue to support commodity prices
  • Silver (XAG / USD) Prices remain vigilant at the key psychological level of $ 25

Inflation, wood and silver

As inflationary fears began to flare, the issue of commodities such as lumber, copper and silver (XAG / USD) has exploded, putting the lumber supply chain under immense pressure. Given the heavy use of wood in homes, the combination of massive stimulus injections and closures allowed American citizens to renovate their current homes, further supporting the bullish narrative regarding the softwood market.

Housing begins in the United States

Source: Refinitiv

Since April 2020, a combination of low interest rates, closed closings, and additional stimulus measures have encouraged American citizens to renovate and expand their homes, driving up the price of wood.

With the combination of high demand and tight supply driving the overall rally, timber prices managed to achieve growth of around 580% since the onset of the pandemic (blocks) in March 2020, before reaching a peak.

Visit the DailyFX Education Center to find out why news events are the key to fundamental Forex analysis

But with inflationary concerns now claiming the spotlight for at least a few months, the Federal Reserve viewed the softwood market as a leading indicator that could be the main driver of monetary policy changes and, more specifically, talks about tapering.

Sawn timber price action

Since hitting $ 1,711, lumber prices have fallen aggressively, reassuring Fed Chairman Jerome Powell last month that inflation could be temporary. With prices now below $ 600, an increase in bullish momentum could provide the bulls with further upside potential, towards the 23.6% Fib retracement level of $ 731.4 as the CCI tries to break out of oversold territory.

Daily table of wood (wood)

Chart prepared by Tammy Da Costa using TradingView

Silver Price Action (XAG / USD)

Silver prices (XAG / USD) are currently supported by the key psychological level of $ 25, which has provided some comfort level for the precious metal on numerous occasions. confluence zone between the 38.2% Fibonacci retracement level (August 2020 – September 2020) of $ 24.75 and the 23.6% Fibonacci retracement (2020 move) of $ 25.67 it should remain intact, providing additional support and resistance for the next move.

Silver Daily Chart (XAG / USD)

cryptoshitcompra.com/wp-content/uploads/2021/07/1626978843_873_Madera-y-plata-XAG-USD-Are-precios-para-prcios.png «/>

Read also USD / JPY sees a new rise in Japanese GDP

Chart prepared by Tammy Da Costa using TradingView

Meanwhile, price action currently remains below the 20-50 moving average (MA) while the Commodity Channel Index (CCI) remains in overbought territory.

– Written by Tammy Da Costa, DailyFX.com Analyst

Contact and follow Tammy on: @ Tams707

Source link


Related Posts

© 2024 Cryptocoin Budisma.net