|

Silver Price Forecast: XAG/USD steady around $22.40s on the back of falling US T-bond yields

  • Silver rallies for the second day in a row, up some 1.79%, amid falling US T-bond yields.
  • Fed announces a faster bond taper, and its policymakers project three interest rates hikes by 2022.
  • XAG/USD Technical Outlook: The break of a downslope trendline can send the white-metal towards $23.00

Silver (XAG/USD) rallies during the New York session, up some |.79%, trading at $22.46 at the time of writing. The market sentiment is upbeat, as portrayed by European equity indices finishing in the green. Contrarily in the US, stocks fluctuate between gainers and losers, after on Wednesday, the Federal Reserve announced a faster bond-taper, and the median of its members penciled three rate hikes in 2022

Fed’s increase the speed of the bond-taper, projects three rate hikes in 2022

Fed’s last monetary policy of the year came as widely expected by markets. The US central bank announced that it would increase the pace of its QE reduction from $15 to $30 Billion, double the amount agreed in November’s meeting, meaning that they would end by March of 2022. Furthermore, it revealed its Summary of Economic Projections (SEP), which shows that the board expects inflation as high as 2.6% in 2022, 2.3% in 2023, and 2.1% in 2024, a tick higher than the September projections.

Apart from this, Fed’s policymakers expect that the Federal Fund Rate (FFR) will end at 0.90% in 2022, meaning the US central bank would hike three times. By 2023, they expect the FFR at 1.6%, and in 2024 at 2.1%.

In the meantime, the US 10-year Treasury yield slides four basis points, sits at 1.422%, a headwind for the greenback, thus favoring precious metals. The US Dollar Index, which tracks the buck’s performance against a basket of six peers, edges lower 0.48%, currently at 96.05.

XAG/USD Price Forecast: Technical outlook

Silver is trading above the hourly simple moving averages (SMAs), so XAG/USD has an upward bias in the near term. Additionally, the break of a slight down-slope trendline around $22.25 confirmed the aforementioned, exposing crucial resistance levels to the upside.

The first resistance would be the R2 daily pivot at $22.54, followed by the R3 daily pivot at $22.983, and then $23.00.

On the flip side, the first support would be the 200-hour SMA at $22.19, followed by the 100-hour at $22.09, and the 50-hour SMA at $21.99.

XAG/USD

Overview
Today last price22.46
Today Daily Change0.39
Today Daily Change %1.77
Today daily open22.07
 
Trends
Daily SMA2022.9
Daily SMA5023.54
Daily SMA10023.57
Daily SMA20024.95
 
Levels
Previous Daily High22.13
Previous Daily Low21.42
Previous Weekly High22.62
Previous Weekly Low21.83
Previous Monthly High25.41
Previous Monthly Low22.69
Daily Fibonacci 38.2%21.86
Daily Fibonacci 61.8%21.69
Daily Pivot Point S121.62
Daily Pivot Point S221.17
Daily Pivot Point S320.92
Daily Pivot Point R122.33
Daily Pivot Point R222.58
Daily Pivot Point R323.03

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

AUD/USD seems vulnerable near 0.6800, 10-month low amid bullish USD

AUD/USD languishes near a 10-month low during the Asian session on Friday, awaiting a break below 0.6800 before the next leg up amid a bullish US Dollar. Firming Fed rate-hike expectations, along with fading hopes for US-Iran diplomacy, help the USD hold gains at its highest level since April 2025. Moreover, the RBA’s dovish tilt undermines the Aussie and backs the case for further losses.

USD/JPY bulls turn cautious near 160.00 amid intervention risks

USD/JPY enters a bullish consolidation phase around its highest level since early September as bulls turn cautious amid intervention risk near 160.00. Meanwhile, the downside seems cushioned as the wide US-Japan interest rate gap keeps the Yen carry trade active. Furthermore, the possibility of a jumbo Fed rate hike and Middle East uncertainties hold the US Dollar near a 19-month top, supporting the currency pair.



Gold remains on the back foot below $3,900

Gold now alternates gains with losses below the $3,900 mark per troy ounce on Friday. The precious metal struggles to regain traction amid the firmer US Dollar, mixed US Treasury yields and expectations of further tightening by the Fed at its December meeting.

Bitcoin just posted five straight losing weeks, and the storm may not be over yet

Bitcoin is struggling to find support, slipping below $70,000 as multiple headwinds threaten to push the Crypto King lower. The much-anticipated “Uptober” rally failed to materialize, with persistent selling pressure and widespread liquidations instead reinforcing the “Rektober” narrative.

Week ahead – Fed Minutes, inflation data and Nvidia earnings to guide investors

Fed minutes may add to hawkish tone as bets of 50-bps hike grow. Nvidia to report earnings as bar to impress high after spy scandal. Trade and geopolitics to be focal point of Trump-Xi summit.

Gold hit its lowest level of 2026 near $3,850
Gold (XAU/USD) attempts to stabilize around $3,890 on Friday after falling to $3,852 on Thursday, its lowest level since October 2025. The precious metal has lost more than 4% this week, as investors increasingly anticipate further monetary tightening from the Federal Reserve (Fed). The latest decline reflects a sharp change in market expectations.