Silver Price Forecast: XAG/USD clings above $25.50 as bull's eye $26.00
|- Precious metals benefit from a risk-on market mood amid elevated US Treasury yields.
- US President Biden supported more NATO troops in Eastern Europe while calling Russia to be removed from the G-20 group.
- XAG/USD Price Forecast: The decisive break above $25.40 could lead to a move towards $26.00 and beyond.
As the Asian Pacific session begins, Silver (XAG/USD) advances for the second straight day but retreated from daily highs around $25.85, amidst high US Treasury yields and an upbeat market. At the time of writing, XAG/USD is trading at $25.55.
Global equities overnight were mixed, as European equities fluctuated, while US stocks indices finished Wall Street with gains. Discussions between Russia and Ukraine have failed to progress, extending the war for a fourth-consecutive week. Meanwhile, NATO’s two-day summit kicked in. Worth noting that US President Joe Biden supported the increase of NATO troops on the eastern front, a senior US official reported. Moreover, Biden and European NATO members assessed the risks of Russia’s launching a biological, chemical, or nuclear attack, while Biden called for Russia to be removed from the G-20.
The US Dollar Index, a gauge of the greenback’s value against a basket of peers, has been supported throughout the day, up 0.18%, at 98.789, underpinned by high US Treasury yields. The 10-year benchmark note yield is up to five basis points, sitting at 2.370%, putting a lid on the XAG/USD rally.
Gold (XAU/USD) is also up in the day, some 0.68%, at $1957.88 a troy ounce, despite elevated US Treasury yields.
Aside from this, Fed speakers have continued to grab headlines. Chicago Fed President Charles Evans said he is “comfortable” with 25 bps increases to the Federal Funds Rate but remains “open” to 50 bps increases if needed. Earlier, Minnesota Fed President Neil Kaskari said that 10-year Treasury yields remain low while emphasizing a risk of overdoing it on rate hikes. Kashkari further added that neutral rates
XAG/USD Price Forecast: Technical outlook
Silver (XAG/USD) bias is still upwards. As mentioned on yesterday’s note, “on Monday, the 50-day moving average (DMA) rollover the 200-DMA, forming a golden-cross, a bullish signal that although is lagging, could open the door for further gains on XAG/USD.”
On Thursday, XAG/USD broke November 16, 2021 resistance level at $25.40, leaving it as support. With that said, XAG/USD’s first resistance would be March 24 daily high at $25.85. Once cleared, the next supply zone would be August 4, 2021, a daily high at $26.00, followed by July 16, 2021, at $26.45.
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