Silver Price Analysis: XAG/USD tracks S&P 500 Futures to refresh multi-day top above $27.00
|- Silver remains on the front foot and refreshes the highest levels since late February.
- S&P 500 Futures stay mildly bid near record top as vaccine optimism, US-Iran deal extends Friday’s risk-on mood.
- Fuel pipeline cyberattack, covid woes in Asia fail to dim market optimism.
Silver (XAG/USD) picks up bids around $27.60, up 0.35% intraday, during Monday’s Asian session. In doing so, the white metal prints a three-day uptrend while keeping Friday’s gains, backed by US dollar weakness.
The European Union (EU) signed a major vaccine deal with the Pfizer-BioNTech, which in turn enables the bloc to match the pace with other developed nations/regions, as far as the coronavirus (COVID-19) vaccine is concerned. On the same line, Australia’s New South Wales (NSW) is also up for availing the Pfizer-BioNTech jabs with a few weeks to tame the risk of the pandemic’s resurgence at home. Further, Iran hasn’t dumped nuclear talks with the US, surprisingly, which in turn backs the risk-on mood.
However, Brexit jitters join the covid woes in Japan and India, as well as the US government’s declaration of the state of emergency over fuel pipeline cyber-attack, test the market’s optimism.
Against this backdrop, S&P 500 Futures print 0.26% intraday gains after recently refreshing the all-time high with 4,237.62. Additionally, the US 10-year Treasury yields regain 1.60%, up by two basis points (bps). Though, the US dollar index (DXY) refrains from extending Friday’s losses, the heaviest in six months, towards late February lows.
Moving on, risk catalysts need to entertain the bullion traders as the economic calendar is light for the day. Among the key news, covid, vaccine and central bank policymakers’ comments, if any, will be the key to watch for fresh impulse.
Technical Analysis
FXStreet’s Ross J. Burland says, “The bullish impulse may have run out of juice considering how far it has come in just a short couple of days. The price has met a significant daily structure at the highs which have already started to result in profit-taking.
Read: XAG/USD bulls moving up against a wall of key resistance
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