Silver Price Analysis: XAG/USD soars and reclaims the 20-day SMA, eyes on rising yields

The XAG/USD soared more than 1.50% to $22.90, just above the 20-day SMA.
Amid hawkish words from Fed’s Barking, US yields are rising, which could limit the upside.
Weekly Jobless Claims from the US came in lower than expected.
A sour market mood an escalating tensions in the Middle East.

Patricio Martín FXStreet

On Thursday, the XAG/USD spot price rose back above the 20-day Simple Moving Average, towards $22.90, seeing sharp gains. That being said, US yields rose after lower-than-expected US weekly Jobless Claims and hawkish words from the Federal Reserve’s (Fed) Thomas Barking, which may limit the upside for the rest of the session.

On the data front, the U.S. Department of Labor revealed that the Initial Jobless Claims from the week ending on November 3 missed the consensus. The people filling for unemployment benefits came in at 217,000, lower than the consensus of 218,000 and fell in relation to it last reading of 220,000. In addition, during the American session, Thomas Barkin commented that in his perspective, inflation is “too high” and that he isn’t convinced that it is not on a smooth path towards the 2% goal.

As a reaction, the US Treasury yields, often seen as the cost of holding non-yielding metal, are edging higher, with the 2,5 and 10-year yields advancing towards 4.96% and 4.55%, respectively. Still, according to the CME FedWatch Tool, the odds of a 25 basis points hike in the Fed’s December meeting remain low, around 10%, and markets seem to be awaiting high-tier data to continue placing their bets on the next decisions. The US will report inflation figures from October next week.

XAG/USD Levels to watch

Observing the daily chart, the XAG/USD Index displays a neutral to bearish technical outlook for the short term as despite gaining significant traction, the bullish momentum is still weak. The Relative Strength Index (RSI) indicates a neutral stance below its midline, displaying a flat slope in the negative territory, while the Moving Average Convergence (MACD) prints stagnant red bars. Furthermore, the price is above the 100 and 200-day Simple Moving Averages (SMAs), suggesting that the bulls are in command over the bears on the bigger picture.

Resistance levels: $23.00, $23.15,$23.30 (100 and 200-day SMA convergence).
Support levels: $22.90 (20-day SMA), $22.70, $22.50.

XAG/USD Daily chart

XAG/USD

Overview
Today last price	22.96
Today Daily Change	0.42
Today Daily Change %	1.86
Today daily open	22.54

Trends
Daily SMA20	22.86
Daily SMA50	22.77
Daily SMA100	23.19
Daily SMA200	23.27

Levels
Previous Daily High	22.85
Previous Daily Low	22.3
Previous Weekly High	23.61
Previous Weekly Low	22.54
Previous Monthly High	23.7
Previous Monthly Low	20.68
Daily Fibonacci 38.2%	22.51
Daily Fibonacci 61.8%	22.64
Daily Pivot Point S1	22.28
Daily Pivot Point S2	22.02
Daily Pivot Point S3	21.74
Daily Pivot Point R1	22.83
Daily Pivot Point R2	23.11
Daily Pivot Point R3	23.37

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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