Silver Price Forecast: XAG/USD hovers around $24.50, focus on Russia-Ukraine talks
|- Silver prices grind higher after four-week uptrend, recently easing from daily top.
- Market sentiment dwindles amid anxiety over Kyiv-Moscow negotiations.
- Western sanctions, Russia’s nuclear alarm keep traders on the edge, EU’s von der Leyen hints at Ukraine’s inclusion in the bloc.
- Headlines surrounding Russia, Ukraine remain as crucial drivers, second-tier data may entertain traders as well.
Silver (XAG/USD) holds onto the week-start gap-up near $24.50, up 0.90% intraday during Monday’s Asian session. The bright metal rose during the last four consecutive weeks as global markets rushed towards the precious metals in search of risk-safety due to the Russia-Ukraine crisis.
The risk-off mood, however, has recently been challenged by the headlines conveying the Moscow-Kyiv talks at the Belarus border. However, the latest comments from European Commission President Ursula von der Leyen seemed to have challenged the market’s cautious optimism. The regional leader recently said to the EU News that the European Union (EU) wants Ukraine in the bloc while also adding, “They’re one of us.”
Also challenging the market sentiment, as well as fueling the XAG/USD prices, are the news suggesting Belarus’ readiness to reject the status as a non-nuclear nation and Russian President Vladimir Putin’s putting of nuclear deterrence forces on high alert. It’s worth noting that fears over Western sanctions on Moscow, including the major ones relating to the SWIFT payment system and Russian central bank, also keep the silver buyers hopeful.
Amid these plays, the S&P 500 Futures drop around 2.0% while the US 10-year Treasury yields mark an eight-pip fall near 1.90% by the press time.
Moving on, headlines concerning the Russia-Ukraine talks will be in focus while US trade numbers for January and Chicago Purchasing Managers’ Index for February may offer additional directions to the silver prices.
Technical analysis
Silver prices remain firmer inside a three-week-old ascending trend channel, between $24.30 and $25.30 at the latest. That said, January’s high near $24.70 acts as the immediate upside barrier for the XAG/USD prices.
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