• XAG/USD falls on the back of the discovery of a new COVD-19 variant in South Africa.
  • Risk-off market mood spurred by the COVID-19 NU variant triggered a sell-off in the precious metals segment.

Silver (XAG/USD) extends its overnight session losses, plunges 1.91% in the day, trading at $23.14 during the New York session at the time of writing. The discovery of a new COVID-19 variant called NU in South Africa dented the market sentiment.

South Africa discovered a new COVID-19 variant, which dampened market sentiment

According to wires, the global scientific community is on alert. There is a chance that the new COVID-19 variant “NU” discovered in South Africa, could be more virulent than the Delta and vaccine-resistant. Scientists said that it has many mutations on the spike protein, and it is the “most evolved” variant yet discovered from the original virus.

In the overnight session, XAG/USD reached a daily high at $23.70. However, once the level was reached, COVD-19 news crossing the wires triggered a $0.40 drop that found some follow-through as the European and North American sessions progressed. In the last couple of hours, silver broke below $23.00 but bounced off Friday’s low at $22.87, reclaiming the $23.00 as of writing.

In the meantime, the US Dollar Index, which tracks the greenback’s performance against a basket of six rivals, falls 0.60%, sits at 96.15, underpinned by falling US T-bond yields, with the 10-year benchmark note, slides 14 basis points, down to 1.50%.

Therefore, COVID-19 developments would be the main drivers for silver and commodity traders. It is worth noticing that gold is trading with heavy losses, collapsed $15.00 in the day, standing at $1,785, at press time. Further, Western Texas Intermediate (WTI), US crude oil benchmark is down 11.63%, trading at $68.91.

XAG/USD Price Forecast: Technical outlook

Silver (XAG/USD) has a bearish bias, as depicted by the daily moving averages (DMA’s) residing above the spot price. That, alongside the Relative Strenght Index (RSI) at 36, indicates that the non-yielding metal still has enough room to print another leg-down.

In the outcome of extending the downtrend, the first demand zone would be the $23.00 figure. A breach of the latter would expose crucial support levels, like the October 12 swing low at $22.34, followed by the psychological $22.00.

XAG/USD

Overview
Today last price 23.14
Today Daily Change -0.45
Today Daily Change % -1.91
Today daily open 23.59
 
Trends
Daily SMA20 24.32
Daily SMA50 23.54
Daily SMA100 24.01
Daily SMA200 25.24
 
Levels
Previous Daily High 23.73
Previous Daily Low 23.52
Previous Weekly High 25.41
Previous Weekly Low 24.56
Previous Monthly High 24.83
Previous Monthly Low 22
Daily Fibonacci 38.2% 23.65
Daily Fibonacci 61.8% 23.6
Daily Pivot Point S1 23.5
Daily Pivot Point S2 23.4
Daily Pivot Point S3 23.28
Daily Pivot Point R1 23.71
Daily Pivot Point R2 23.82
Daily Pivot Point R3 23.92

 

 

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