Silver Price Forecast: XAG/USD sustains above $25.00 amid risk-off mood and renewed US banking jitters

Silver Price (XAG/USD) has shifted its business confidently above the critical resistance of $25.00 in the early Tokyo session. The white metal witnessed immense buying interest after investors shifted their funds into bullions to avoid sheer volatility inspired by disappointing earnings from S&P500 companies.

Risings fears of economic slowdown after poor earnings and weak revenue guidance from S&P500 companies have sent demand for US Treasury bonds and bullions on fire. Also, renewed banking jitters after the release of quarterly results of First Republic Bank underpinned bullions and US government bonds as safe-haven. First Republic Bank showed a sharp fall in customers’ deposits, which has forced the financial institution to rely on borrowings that will attract higher interest rates.

Higher demand for US government yields dragged yields significantly. The 10-year US Treasury yields have dropped heavily to 3.40%.

Meanwhile, the US Dollar Index (DXY) has shown a minor correction to near 101.83 after printing a two-day high of 101.95. Weaker demand for the S&500 amid mixed earnings and soaring anxiety ahead of the interest rate decision from the Federal Reserve (Fed) have improved the appeal for the US Dollar.

Going forward, US Durable Goods Orders (March) data will remain in focus. Monthly economic data that indicates forward demand for core goods is expected to expand by 0.8% vs. a contraction of 1.0%.

Silver technical analysis

Silver price is marching towards the upper portion of the Sideways Channel chart pattern formed on a two-hour scale. The aforementioned chart pattern indicates a rangebound performance by the asset. The white metal has crossed the 20-period Exponential Moving Average (EMA) at $25.08 on the upside, indicating that the short-term trend is bullish.

Also, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00, which signals that investors are awaiting a potential trigger for further action.

Silver two-hour chart