Silver Price Forecast: XAG/USD steady at $24.00 amid positive US NFP report
|- XAG/USD climbs for the second day in a row amid positive US economic data.
- The US Dollar is falling, underpinned by falling US Treasury yields, boosts precious metals.
- XAG/USD: A daily close above the 100-DMA opens the door for $25.00; otherwise, it could fall to $23.00.
Silver (XAG/USD) advances for the second-consecutive day, up 1.08% trading at $24.02 during the New York session at the time of writing. The US jobs positive data improve market sentiment, equity markets climb, while US T-bond yields slide, benefitting precious metals.
On Friday, the US Bureau of Labor Statistics (BLS) revealed its Nonfarm Payrolls report for October, which reported the creation of 531K new jobs added to the economy, higher than the 425K foreseen by economists. Further, the Unemployment Rate dropped to 4.6% from 4.7%, while labor force participation was unchanged.
The market reacted positively to the report, sending US stocks rallying while US T-bond yields slump, with the 10-year benchmark note slipping six basis points sitting at 1.465% for the first time under the 1.50% threshold since October 4.
Concerning the greenback, the US Dollar Index that measures the US dollar against six rivals edges lower some 0.06%, at 94.28, underpinned by falling US Treasury yields.
XAG/USD Price Forecast: Technical outlook
In the daily chart, the XAG/USD broke above the top-trendline of a bullish flag, approaching the 100-day moving average (DMA) at $24.18. Also, the Relative Strength Index (RSI), a momentum indicator, is edging higher, at 57, with enough room left, before reaching overbought conditions. A daily close above the 100-DMA could propel silver price towards the 2021 high at $24.85, followed by the possibility of a test of $25.00.
On the other hand, failure to break above the 100-DMA and to hold above $24.00 could open the door for further losses. The first support would be the 50-DMA at $23.35, followed by $23.00.
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