Silver Price Forecast: XAG/USD hovers around $22.50 on firmly US T-bond yields

Silver (XAG/USD) is edging lower for the third consecutive day, is down 0.13% during the New York session, trading at $22.59 at the time of writing. The white metal has been range-bound in the week, trapped in the $22.00 – $22.80 range, awaiting a fresh catalyst.

The market sentiment is upbeat due to some factors. Firstly, the US debt ceiling solution, although short-term, it was a relief for investors. Additionally, Russia’s offer to ease Europe’s energy crisis adds up the upbeat tone.

The US 10-year Treasury yield is rising four basis points, sitting at 1.569%, putting a lid on silver. In the meantime, the US Dollar Index, which tracks the greenback’s performance against a basket of six currencies, is barely down, 0.01%, currently at 94.22.

XAG/USD Price Forecast: Technical outlook

1-hour chart

XAG/USD is trading above the simple moving averages (SMA’s), suggesting that silver has an upside bias. The 50 and the 100-SMA are at the $22.55-56 range, exerting upward pressure. 

For silver buyers to resume the uptrend, they will need to break above $22.80. in case of that outcome, the first supply zone would be $23.00. A break of the latter would expose $23.12. A breach of that level could open the door for further gains. The next resistance level would be the September 14 swing lows around $23.50, followed by the psychological $24.00

On the other hand, for XAG/USD sellers to regain control, they will need to break below the 200-SMA at $22.36. Once that has been achieved, a fall towards 2021 lows around $21.40, is on the books, but there would be some hurdles on the way. The first demand zone would be $22.00, followed by $21.79.

The Relative Strength Index (RSI) is at 48, aiming lower, supporting the downside bias.

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