- Spot silver prices are consolidating in the $23.00 area on Monday in subdued, holiday-thinned trade.
- The main focus of precious metals will be on the reopening of US bond markets on Tuesday.
- If as many FX strategists suspect, the US dollar recovers this week ahead, that could be another XAG/USD headwind.
Spot silver (XAG/USD) prices are consolidating in the $23.00 area on Monday in subdued, holiday-thinned North American trade as a result of US market closures for MLK Day. That leaves spot prices roughly around the mid-point of last Friday’s $22.80-$23.30ish trading range, with prices still very much sandwiched between support and resistance in the form of the 50-day moving average at $23.20 and the 21-day moving average at $22.77. These ranges are very unlikely to be broken ahead of the upcoming Tuesday Asia Pacific session given the lack of trading volumes at present.
The main focus of precious metals will be on the reopening of US bond markets on Tuesday after the implied yield on US 10-year note futures were reported to have gone as high as 1.86% on Monday. 10-year yields surged back above 1.80% last Friday to close at multi-year highs and, if Monday’s move is replicated on Tuesday, that would mark the highest level since January 2020. The upside last Friday was driven by a rally in underlying real yields, with the 10-year TIPS hitting its highest level since early Q2 2021 above -0.70%.
Higher real yields diminish the appeal of non-yielding precious metals and so if real yields continue to rally this week, perhaps as traders “price in” a hawkish upcoming Fed meeting next week, XAG/USD could be hit. The $22.60s has been an important balance area in recent months and would be a key level of support to watch. Beneath that, $22.00 is the next key area of support to keep an eye on. Compounding silver’s potential headwinds this week could be if the US dollar, as many FX strategists have been predicting, starts to recover some ground this week after getting battered amid a squeeze on over-crowded long-positions last week.
|Today last price||23.01|
|Today Daily Change||0.07|
|Today Daily Change %||0.31|
|Today daily open||22.94|
|Previous Daily High||23.31|
|Previous Daily Low||22.83|
|Previous Weekly High||23.31|
|Previous Weekly Low||22.2|
|Previous Monthly High||23.44|
|Previous Monthly Low||21.42|
|Daily Fibonacci 38.2%||23.01|
|Daily Fibonacci 61.8%||23.13|
|Daily Pivot Point S1||22.74|
|Daily Pivot Point S2||22.54|
|Daily Pivot Point S3||22.26|
|Daily Pivot Point R1||23.23|
|Daily Pivot Point R2||23.51|
|Daily Pivot Point R3||23.71|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.