- Silver is in pre-US jobs report release consolidation mode, as prices continue to undulate within its recent $24.80-$25.50ish ranges.
- Technicians are eyeing bullish technical structures as the precious metal retains an underlying bid on Ukraine-related developments.
Spot silver (XAG/USD) is in its typical pre-US jobs report release consolidation mode, as prices continue to undulate within its recent $24.80-$25.50ish ranges that have prevailed over the past few sessions. For now, dips towards the $25.00 mark are being bought while rallies towards earlier weekly highs around $25.50 are being sold and, at current levels in the $25.20s, XAG/USD is trading close to flat on the day. Though the price action has been a tad more consolidative in recent sessions, the technicals are still very much looking bullish for silver.
After all, XAG/USD is trading just below multi-month highs and some have argued is forming an ascending triangle/pennant structure that could signal an upcoming bullish break. Risk appetite has taken another significant knock on Friday, with European equities cratering amid fears fighting in Ukraine could spill over into a nuclear accident. Friday’s jobs report may well build the case for faster Fed tightening later in the year, which would typically be bullish for the buck and bond yields and bearish for the likes of silver.
But as global commodity prices continue to shoot up amid fears of Russia supply disruptions, the underlying safe-haven/inflation-protection bid supporting precious metals probably isn’t going anywhere any time soon. If XAG/USD can clear resistance around $25.50 to the upside in the coming sessions, that could open the door to a surge towards July 2021 highs/early June 2021 lows in the $27.00 area.
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