Silver Price Forecast: XAG/USD struggled at $25.00, retreated to the $24.50 region amid falling US yields


  • XAG/USD finishes the week on the wrong foot, despite falling US bond yields.
  • XAG/USD plummeted in the day as risk-off market mood boosts the greenback.
  • Fed’s Waller and Clarida would like a faster bond taper.
  • XAG/USD Technical outlook: An inverted head and shoulders target the $28.20-30 range.

As Wall Street closes, silver (XAG/USD) finished the session in the red, down almost 1%, at $24.58 at the time of writing. Friday’s session witnessed a downbeat market sentiment in the equity markets. The S&P 500 and the Dow Jones Industrial printed losses between  0.11% and 0.74%. The outlier was the Nasdaq 100, gaining 0.56%. Safe-haven currencies finished the day in the green in the FX market, while risk-sensitive currencies, like the AUD, the NZD, and the GBP, fell.

In the overnight session, silver remained subdued, trendless trading around the $24.75-93 region. However, some fed speakers spurred demand for the greenback throughout the American session, ultimately affecting the white metal, which plunged to the  $24.50 area.

Fed’s Waller and Clarida would like a faster bond taper

On Friday, Fed Governor Christopher Waller indicated that the Federal Reserve may double the pace of its QE to $30 billion per month to end by April of 2022. Waller added that accelerating the rhythm would give the US central bank space for rate hikes as soon as Q2 of 2022. 

Later during the day, Fed’s Vice Chairman Richard Clarida said that it “may very well be appropriate” to discuss accelerating the pace of the bond tapering, in line with St. Louis President James Bullard. Further noted that he sees upside risks to inflation and added that the economy is very strong position at that it looks as though Q4 is going to be very good. 

The 10-year Treasury yield closed at 1.55% in the bond market, down three and a half basis points.

XAG/USD Price Forecast: Technical outlook

Silver (XAG/USD) portrays that an inverted head-and-shoulders in the daily chart just formed. However, it would need a confirmation above the neckline, though Friday’s price action witnessed a daily close below the neckline. Despite the abovementioned, the non-yielding metal has an upward bias in the near term, with the 50 and 100-day moving averages (DMA’s) residing below the spot price.

Nevertheless, to accelerate the uptrend, silver bulls would need to reclaim the 200-DMA at $25.26. That outcome would open the door for further gains, though XAG/USD bulls would find some hurdles on the way north.

The first resistance would be the August 4 high at $26.00. A sustained breach of the latter would expose July 14 high $26.44, followed by the psychological $27.00.

On the flip side, failure the first support would be the 100-DMA at $24.06

XAG/USD

Overview
Today last price 24.59
Today Daily Change -0.23
Today Daily Change % -0.93
Today daily open 24.82
 
Trends
Daily SMA20 24.4
Daily SMA50 23.52
Daily SMA100 24.12
Daily SMA200 25.33
 
Levels
Previous Daily High 25.16
Previous Daily Low 24.68
Previous Weekly High 25.39
Previous Weekly Low 24.03
Previous Monthly High 24.83
Previous Monthly Low 22
Daily Fibonacci 38.2% 24.87
Daily Fibonacci 61.8% 24.98
Daily Pivot Point S1 24.61
Daily Pivot Point S2 24.41
Daily Pivot Point S3 24.14
Daily Pivot Point R1 25.09
Daily Pivot Point R2 25.36
Daily Pivot Point R3 25.56

 

 

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