Silver Price Forecast: XAG/USD slides almost 1%, down at $22.22

Silver (XAG/USD) retreats from Friday’s gains, slumps almost 1%, trading at $22.22 during the New York session at the time of writing. Safe-haven assets like silver extend their losses amid reports that the COVID.19 omicron variant, although contagious, seems to cause mild symptoms, propelling equity prices higher. 

Additionally, US bond yields, which correlates inversely with precious metals prices, are rising, a headwind for non-yielding assets. The US 10-year Treasury yield advances five basis points, up to 1.397%, underpins the greenback, with the US Dollar Index rising 0.23%, at 96.414.

In the overnight session, the white metal peaked around the 1-hour 100-simple moving average (SMA) at $22.58, then throughout the day extended its losses, dropping as low as $22.10, rebounding up to the current price.

XAG/USD Price Forecast: Technical outlook

Silver (XAG/USD) in the 1-hour chart depicts a bearish bias, attributed to the 1-hour simple moving averages (SMA’s) residing above the spot price. Also, the confluence of the 50-SMA and the daily central pivot point at $22.37, unsuccessfully tested three times, appears to be a strong selling level for XAG/USD bears. 

In the outcome of extending further down, the first support would be the S1 daily pivot at $22.16. A break below that level would expose crucial support levels. Friday’s low at $22.01, followed by S2 daily pivot at $21.81.

On the flip side, the confluence of December 3 and the 100-SMA around the  $22.51-56 would be the first resistance, followed by the R1 pivot at $22.72, followed by the R2 daily pivot at $22.92.