Silver Price Forecast: XAG/USD records a new YTD high around $25.70 on safe-haven appetite
|- XAG/USD rallies almost 2% during the day while eyeing of record another YTD high as Wall Street’s close looms.
- The US jobs report, although positive, was ignored by market players.
- XAG/USD Technical Outlook: Bullish, and it can extend the rally in the case of a daily close above $25.67.
Silver (XAG/USD) remains buoyant as traders head into the weekend after reaching a new YTD high at around $25.70. In the week so far, the white metal is up 5.59%, its largest gain since May 2021, though it seems to be settling as the New York close approaches. At the time of writing, XAG/USD is trading at $25.67.
In the early North American session, the US Department of Labor reported that the US economy added 678K jobs to the labor market, up from 440K estimations after a gain of 467K in January. Silver trader’s reaction was muted. Usually, it has a more significant impact on the market, but Ukraine-Russia jitters, grab investors’ attention.
Following the US Nonfarm Payrolls report release, Chicago Fed President Charles Evans said that job numbers have been suitable for some time and noted a “tremendous amount” of uncertainty regarding the Russia-Ukraine conflict. Further, Evans stated that it would “be more than essential” hike rates 25 bps at each meeting.
Global equity markets continued trading in the red, preparing to have one of its worst weeks in some time. Meanwhile, US Treasuries remain bid amid safe-haven appetite, weighing on US Treasury yields. The 10-year benchmark note is losing ten basis points, sitting at 1.743%, a tailwind for non-yielding metals, like silver and gold, which depreciate when yields rise.
In the FX space, the buck is bid, as depicted by the US Dollar Index, advancing 0.84%, up at 98.541.
XAG/USD Price Forecast: Technical outlook
XAG/USD is probing February 24 daily high at $25.62, unsuccessfully tested twice. If XAG/USD bulls achieve a daily close above, a move towards $26.00 is on the cards. However, silver bulls would face several resistance levels on their way north.
XAG/USD’s first resistance would be the $26.00 mark. Breach of the latter would expose July 16, 2021, a daily high at $26.45, followed by July 6, 2021, a daily high at $26.77.
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