- Silver snaps two-day rebound, eyes first weekly loss in seven.
- Ukraine-Russia peaces talks remain sluggish, fears of Moscow’s nuclear use challenge sentiment.
- Hopes of Putin, Zelenskyy meeting join softer yields, USD to keep buyers hopeful.
- Risk catalysts remain in the driver’s seat, light calendar may offer easy day.
Silver (XAG/USD) prices consolidate recent gains around $25.30 during a sluggish Asian session on Friday, adding strength to the first weekly downside since late January.
The bright metal’s latest weakness could be linked to the market’s cautious sentiment concerning the Ukraine-Russia crisis, as well as mixed messages from China. However, hopes of overcoming the grim situation in Kyiv and softer USD keep the XAG/USD buyers hopeful.
Turkey brokers a top-tier gathering of Russian President Putin and his Ukrainian counterpart Volodymyr Zelenskyy to discuss the 15-point peace plan in detail, which in turn keeps the markets hopeful of overcoming the stand-off between Moscow and Kyiv. However, the Western warning that Moscow may contemplate the use of nuclear weapons dims the optimism. Also challenging the market’s mood are the fears over Russia’s default, as cited by the global rating agency S&P, even if some on the floor confirm receiving coupon payment due this week in the USD.
Elsewhere, China’s step back from previously hawkish comments to ease regulatory crackdown on the property and IT companies joined downbeat comments from the Organisation for Economic Cooperation and Development (OECD) to add to weigh on the market sentiment. “The global economic growth will be more than 1% lower this year due to the Ukraine crisis,” said the OECD.
Amid these plays, the US 10-year Treasury yields closed Thursday with a mildly downbeat performance around 2.16% while Wall Street remained firmer for the third consecutive day.
Considering the light calendar and a lack of major events scheduled on Friday, silver prices may witness fewer moves and can end the week by snapping the six-week winning streak. However, headlines from China and Ukraine remain important to follow for fresh impulse.
Technical analysis
Despite the recent pullback from 10-DMA, around $25.55 by the press time, silver prices keep the upside break of a downward sloping trend line from March 08, which in turn suggests the quote’s strength until it drops back below $24.90.
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