XAG / USD can’t exceed the 200 DMA, drops below $ 25.00

  • XAG / USD pulls back from highs of $ 25.15 to $ 24.90 amid falling US bond yields.
  • Risky market sentiment, weakens the greenback, increases silver’s prospects for higher prices.
  • XAG / USD: Failure to reclaim $ 25.00 opens the door to further downside moves with $ 24.00 as the first target.

Silver (XAG / USD) slumps from a high of $ 25.00 to the $ 24.90 area amid falling US bond yields and broad US dollar weakness across the board. At the time of writing, XAG / USD is trading at $ 24.91 during the New York session, down 0.60%. Market sentiment is grim, despite two of the largest US stock indices rising between 0.38% and 1.01%. All European stock indices closed in the red.

In the overnight session, XAG / USD remained muted, around the $ 25.00-15 range, but fell to $ 24.70 after reading initial US claims for October. Claims were 268K, 8K more than expected, but 1K lower than the previous week, revised to 269K. The number of outstanding unemployment claims fell unexpectedly by 200,000 in the week ended November 6, from 2.209 million to 2.080 million.

According to sources cited by Bloomberg, unemployment figures “have steadily declined and are around pre-pandemic levels”. He added, “Layoffs are falling, suggesting companies are holding onto their workers in the face of a labor shortage.”

In addition, US bond yields remain subdued during the New York session. The 10-year US benchmark grade is down two basis points to 1.584%, supporting the greenback, with the US dollar index falling below 95.80, 0.28% to 95.56.

XAG / USD Price Prediction: Technical Outlook

Silver’s failure of the 200-day moving average (DMA) at $ 25.32 drove a downward move below $ 25.00 but bounced off the September 3 peak support at $ 24.87 and stabilized around the 24th , 90 USD region. The 50 and 100 DMA are below the spot rate and support the upward trend, although the 100 DMA is between the 200 DMA above and the 50 below.

For the XAG / USD bulls to regain control they need a daily close above the 200 DMA. On this outcome, the August 4th high of $ 26.00 would be the first resistance. A break in the latter would reveal the July 6th high at $ 26.77, followed by the psychological $ 28.00 near the 2021 highs.

On the flip side, a break from the $ 24.87 support level would expose the 100-DMA at $ 24.12, followed by the 50-DMA at $ 23.51.

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