Silver Price (XAG/USD) fades upside momentum after refreshing a two-week high, as well as posting a four-day winning streak, to $23.30 as it eases to $23.00 amid an early Asian session on Thursday.
The latest retreat in the Silver Price could be linked to the downbeat options market signals, as well as the market’s risk-off mood that underpins the US Dollar rebound.
It should be noted that a one-month risk reversal (RR) of the Silver price, a gauge of the spread between the call and put options, prints the first biggest negative closing in a week while marking the -0.060 figure at the latest, per Reuters options market data.
Not only the daily RR, but the weekly signals from the options markets are downbeat as well. That said, the weekly RR reverses the previous week’s gains, the biggest since mid-June, while flashing a -0.030 risk reversal by the end of Wednesday’s North American session.
While the options market suggests the XAG/USD pullback, the risk-off mood and firmer US Dollar also challenge the Silver buyers. As a result, the bears should remain hopeful. However, it all depends upon today’s US ISM Services PMI and ADP Employment Change for June, as well as China headlines and recession woes.
Also read: Forex Today: US Dollar shows positive signs, attention turns to US labor market