Silver Price Analysis: XAG/USD stays depressed below $28.00 on upbeat US Treasury yields


  • Silver extends the previous day’s pullback from $28.23, refreshes intraday low.
  • US Treasury yields rise for the second day in last six, DXY keeps recovery moves.
  • China’s crackdown on commodities battles Fed’s ability to ward off tapering fears.
  • US data, Fedspeak eyed for fresh impulse, covid headlines important too.

Silver remains on the back foot for the second consecutive day, down 0.10% intraday near the $27.65, amid Thursday’s Asian session. The white metal bears the burden of the US Treasury yield’s recovery moves, as well as Chinese headlines, amid a quiet session.

The US 10-year Treasury yield stretches the previous day’s run-up near 1.58%, also favoring the US dollar index (DXY) to stay positive above the 90.00 threshold. Behind the moves could be the US Federal Reserve (Fed) policymakers’ rejection of the tapering fears, backed by the market’s acceptance as well as downbeat US data.

Also negatively affecting the silver prices could be China’s recent crackdown on commodity prices. After discussing policy changes and harshly criticizing the commodity speculations, the Chinese government recently banned lenders selling investment products linked to commodities futures to retail buyers.

Alternatively, the US Food and Drug Administration’s (FDA) emergency use authorization (EUA) to the COVID-19 antibody treatment developed by Vir Biotechnology Inc. and GlaxoSmithKline seems to recently favor the risk-on mood. On the same line could be Japan's extended jobs relief measures and the steady vaccinations around the globe of late.

Amid these plays, S&P 500 Futures struggle for a clear direction while the stocks in Asia-Pacific stay depressed by the press time.

Moving on, US Durable Goods Orders, second reading of Q1 GDP and Weekly Jobless Claims could offer additional help to the Fed policymakers before the key Core Personal Consumption Expenditure (PCE) Price Index data, up for publishing on Friday. Should the Fed’s preferred gauge of inflation portray reflation risk, which is more likely, the white metal could witness a corrective pullback.

Technical analysis

Although a clear downside break of 10-day SMA, around $27.80 by the press time, favors silver sellers, an ascending support line from March 31, around $27.45, defends the bulls.

Additional important levels

Overview
Today last price 27.66
Today Daily Change -0.03
Today Daily Change % -0.11%
Today daily open 27.69
 
Trends
Daily SMA20 27.3
Daily SMA50 26.22
Daily SMA100 26.3
Daily SMA200 25.69
 
Levels
Previous Daily High 28.23
Previous Daily Low 27.6
Previous Weekly High 28.75
Previous Weekly Low 27.2
Previous Monthly High 26.64
Previous Monthly Low 24.25
Daily Fibonacci 38.2% 27.85
Daily Fibonacci 61.8% 27.99
Daily Pivot Point S1 27.45
Daily Pivot Point S2 27.21
Daily Pivot Point S3 26.82
Daily Pivot Point R1 28.08
Daily Pivot Point R2 28.47
Daily Pivot Point R3 28.71

 

 

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.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.21 as the dollar extends its gains

EUR/USD has dipped below 1.21, some 70 pips down on the day as the dollar recovers alongside Treasury yields. US Consumer Sentiment beat estimates with 86.4 points. 

EUR/USD News

GBP/USD retreats amid UK GDP miss, reopening concerns

GBP/USD is hovering around 1.4150, down on the day. UK GDP missed with 2.3% in April and a four-week delay to Britain's reopening is speculated. The greenback is gaining some ground.

GBP/USD News

XAU/USD drops back below $1900, as US dollar rebounds ahead of data

Gold price has retraced below the $1900 mark once again, having tested Tuesday’s high near $1903. The latest leg down in gold price comes on the back of a tepid bounce staged by the US dollar, as the Treasury yields trim losses across the curve.

Gold News

Ethereum price prepares for a bullish weekend, targeting $3,000

Ethereum price seems prime to revisit $3,000. Although ETH faces resistance at $2,300, the upswing seems imminent. A downswing below $2,000 could invalidate the bullish thesis. 

Read more

Hot Inflation is warming the seat for the June FOMC

Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.

Read more

Forex MAJORS

Cryptocurrencies

Signatures