- The white-metal falls some 0.54% at press time during the New York session.
- Falling US Treasury yields and US domestic political issues undermine the US dollar.
- XAG/USD Price Forecast: Neutral-bearish bias, as long as it remains below the December 13 high at $22.40.
Silver (XAG/USD) is failing to capitalize on falling US bond yields, retreating below the December 17 daily low, trading at $22.26 during the New York session at the time of writing. An hour after Wall Street’s opening, the market sentiment is downbeat, as depicted by US stock indices falling. At the same time, the Build Back Better US President Biden agenda got torpedoed by Democrat Senator Joe Munchin, backpedaling his support of a $2 trillion tax-and-spending package as year’s end looms, pushing discussion towards next year.
That said, US Treasuries are losing during the day, with the 10-year Treasury yield dropping 1.7 basis points, currently at 1.385%, weighing on the US Dollar Index, falling 0.24%, sitting at 96.34.
Despite the abovementioned, XAG/USD failed to capitalize an upward move, which could be attributed to a technical move, as the white-metal faced strong resistance around $22.60.
XAG/USD Price Forecast: Technical outlook
Silver 1-hour chart depicts the non-yielding metal has a neutral-bearish bias, as long as it remains below the December 13 swing high at $22.40, even though it faced support around the confluence of the 100 and 200-hour simple moving averages (SMAs) around the $22.18-20 region. The last 1-hour candle attempted a break above the December 17 swing at $22.34, fading the move and retreating below the S1 daily pivot.
The lack of a catalyst would keep XAG/USD subdued in the $22.18-35 range. In the event of further downside, the first support would be the 200-hour SMA at $22.20. A decisive breach of the latter would open the door towards $22.00, followed by a challenge of the S3 daily pivot at $21.93.
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