Silver Price Forecast: XAG/USD bounces from weekly lows towards $26.00 on risk-off sentiment

Silver weekly gains took a hit, after being up 6.50%, now sitting at 0.87%.
Risk-aversion in the financial markets dented the prospects for precious metals appetite.
XAG/USD Price Forecast: It is upward biased despite retracing to weekly lows.

Christian Borjon Valencia FXStreet

Silver (XAG/USD) bulls regained control late in the North American session, after reaching the 50% Fibonacci level around $25.31, also the day’s low. However, they staged a comeback and lifted the price of the white metal near the $26.00 mark. At the time of writing, XAG/USD is trading at $25.92.

Risk-aversion in the financial markets got back on Thursday. Russia-Ukraine discussions in Turkey failed to deliver some relief to investors, as talks did not advance regarding truce or ceasefire. Meanwhile, the US inflation figures showed that February’s headline Consumer Price Index rose by 7.95% y/y in line with expectations, while the so-called core CPI expanded by 6.4% y/y as foreseen.

Later in the day, US Initial Jobless Claims for the week ending on March 5 rose to 227K from 217K estimated.

The US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, advanced some 0.56% during the day, sitting at 98.555, a headwind for the white metal.

In the overnight session, XAG/USD fell under $26.00, reaching a daily low near the 200-hour simple moving average (SMA) around $25.27, afterward rose to the $26.00 mark, which also confluences with August’s 2021 monthly high.

XAG/USD Price Forecast: Technical outlook

XAG/USD bias is upwards, though Thursday’s price action illustrates that silver bulls took a breather as they prepare to reclaim the $26.00 mark, which is the first resistance level at press time. Once cleared, the next stop would be $26.45 July 16, 2021 high, followed by July 5, 2021, daily high at $26.77, and then the $27.00 psychological area.

XAG/USD

Overview
Today last price	25.92
Today Daily Change	0.17
Today Daily Change %	0.66
Today daily open	25.75

Trends
Daily SMA20	24.52
Daily SMA50	23.65
Daily SMA100	23.55
Daily SMA200	24.09

Levels
Previous Daily High	26.78
Previous Daily Low	25.4
Previous Weekly High	25.74
Previous Weekly Low	24.1
Previous Monthly High	25.62
Previous Monthly Low	22.01
Daily Fibonacci 38.2%	25.93
Daily Fibonacci 61.8%	26.26
Daily Pivot Point S1	25.17
Daily Pivot Point S2	24.6
Daily Pivot Point S3	23.8
Daily Pivot Point R1	26.55
Daily Pivot Point R2	27.36
Daily Pivot Point R3	27.93

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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