XAG / USD closes at around $ 23.00 despite rising US T-bond yields
- The white metal extends its rally for three consecutive days, up 3.33% for the week.
- Good news on telling the Covid-19 Omicron variant, increased demand for riskier assets.
- XAG / USD Price Prediction: For the short term, XAG / USD is rising but needs to break above 23.00 USD to open the door to further gains.
Silver (XAG / USD) has continued its rally for the past three days, up 0.31% and trading at $ 22.89 during the New York session at the time of writing. There is a risk-taking mood in the financial markets, as positive news in connection with Covid-19 has been over the lines in the last few days.
In conclusion, in one study, South Africa reported that people infected with the Covid-19 Omicron strain were 80% less prone to hospitalization. In addition, the U.S. Food and Drug Administration (FDA) has approved Pfizer and Merck’s Covid-19 treatment pills, which would help the healthcare system manage the disease at home in high-risk patients. However, market participants are looking for riskier assets as the Santa rally continues.
In the meantime, the 10-year US T-bond benchmark note has risen by around three and a half basis points and is at 1.494% and thus closed at the 1.50% threshold, but cannot support the greenback as the unprofitable metal is around slightly appreciates 0.57% against the dollar.
The US macroeconomic record before Christmas contained a large amount of data. Durable goods orders rose 2.5% in November, higher than an estimated 1.6%. The Fed’s most popular inflation indicator, core consumer spending (PCE) rose about 4.7%, higher than an expected 4.5%, ringing the Fed’s bells and justifying the accelerated reduction in QE.
At the same time, initial jobless claims for the week ending December 17 rose to 205,000, as expected, suggesting some consolidation in the labor market. Additionally, at press time, the University of Michigan announced its December Consumer Sentiment Index, which was 70.6 above its estimated 70.4.
XAG / USD Price Prediction: Technical Outlook
The daily chart of silver (XAG / USD) shows that the white metal has a bearish trend, which is confirmed by the daily moving averages (DMAs) well above the spot price. Nonetheless, after the XAG / USD hits a YTD low around $ 21.50, the short-term price action closes at $ 23.00 as the Relative Strength Index (RSI) broke above the 50 center line and is bullish Signal triggered.
On the flip side, the XAG / USD resistance levels would be the psychological value of $ 23.00. A major break from this level would expose the 100 and 50 DMAs at $ 23.39 and $ 23.50, respectively.
On the flip side, the initial support for silver would be the daily low on December 22nd at $ 22.40, followed by the cycle low on December 21st at 22.18 and the value of $ 22.00.