XAG/USD falls for three straight days but is clinging to $24.50 amid high US yields

  • In the North American session, the white metal slips nearly 0.50% on high US yields and upbeat market sentiment.
  • Germany and France are expelling Russian diplomats in response to the Bucha murder.
  • Silver Price Prediction (XAG/USD): The bias is neutral up, but caution should be exercised due to the proximity of the 200-DMA.

Silver (XAG/USD) extends its decline to three straight trading sessions and is struggling to reach $25.00, weighed down by rising US Treasury yields and bullish market sentiment despite escalating Russia-Ukraine conflict. At the time of writing, XAG/USD is trading at $24.50.

As reflected in European and US equities, positive market sentiment is weighing on the non-yield metal’s safe-haven status. The conflict between Russia and Ukraine continues to escalate after Ukrainian forces found out that the Russian army killed 410 unarmed people in the city of Bucha. Europe’s response came with the expulsion of Russian diplomats from Germany and France as Europe weighed the possibility of an energy oil embargo on Russia.

In the US, President Biden said Vladimir Putin could face a war crimes trial and promised Washington would impose another tranche of sanctions on Russia.

Meanwhile, US Treasury yields are rising, reflecting the Federal Reserve’s dovish stance of late, with some officials raising the possibility of a 50 basis point hike. The US 10-year Treasury yield is up four basis points to 2.421%, a tailwind for the greenback, which the US Dollar Index shows remains buoyant, up 0.38% to 99.000.

The US Economy List revealed February factory orders on a monthly basis, which came in at -0.5% as estimated, but trailed January’s 1.5%. The economic calendar would include more Fed speeches on Tuesday and Wednesday in the FOMC minutes.

Silver Price Prediction (XAG/USD): Technical Outlook

XAG/USD bias is bullish, although over the past three trading sessions a series of subsequent lower highs/lows sent silver towards the 50-day moving average (DMA) at $24.33, a solid line of defense for XAG- Bulls pushing the price of white metal into the $24.30 area.

On the upside, initial resistance in XAG/USD would be the daily high of April 1st at $24.86. A break of the latter would reveal the $25.00 figure, followed by the November 16, 2021 daily high of $25.40 and August 4, a daily high of $26.00.

On the upside, XAG/USD initial support would be the 50-DMA at $24.33. Upon release, the following demand zone would be $24.00 followed by the 200-DMA at $23.94.

Technical levels to watch

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