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

Today last price 27.66
Today Daily Change -0.03
Today Daily Change % -0.11%
Today daily open 27.69
Daily SMA20 27.3
Daily SMA50 26.22
Daily SMA100 26.3
Daily SMA200 25.69
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



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