XAG / USD is hovering around the $ 23.30- $ 60 range according to US data before the FOMC protocol
- XAG / USD remained subdued in the Asian and European session as investors await FOMC minutes.
- XAG / USD did not react to previous US economic data.
- XAG / USD: The break of a rising support trendline on Tuesday could accelerate the decline towards USD 23.00.
Silver (XAG / USD) fell 0.80% during the New York session and was trading at $ 23.47 at the time of writing. Market sentiment has been gloomy since Monday when US President Joe Biden called Jerome Powell to the Fed for a second four-year term. The greenback benefited from this as the US dollar index closed at 97.00 and stood at 96.89, an increase of 0.42%.
Meanwhile, US bond yields have declined, with the exception of the short-term. The 2-year and 5-year increases by three and one basis point, respectively, and are 0.64% and 1.34%, respectively. The 10-year US Treasury yield is down 1 basis point and currently stands at 1.65%.
While nominal returns are lower in the long run, real returns have risen from -1.91% to -1.67% in the past few weeks, weighing on the unprofitable metal as investors appear to be starting to price in higher rates in the US in 2022.
In the U.S. Economic Record, initial jobless claims for the week ending November 20 rose to 199,000, better than analysts’ estimate of 26,000, the lowest since 1969) The price index rose 4.1% year over year in October, which corresponded to the average forecasts of economists and confirmed an increase of 0.4% compared to the upward revised value of 3.7% in the previous month.
XAG / USD Price Prediction: Technical Outlook
Tech-wise, the white metal has been trading lower, with the 100 and 200 day moving averages (DMA) above the spot price, while the 50 DMA at $ 23.53 is support for silver, although at press time seems to be giving way to the USD bull. In addition, the break of a two-month-old uptrend line on Tuesday opened the door to further downward pressure on the precious metal.
If the XAG / USD continues to decline, the first area of demand would be the November 23 swing low at $ 23.27. A break of the above would expose the November 3rd cycle low at $ 23.02, followed by the August 9th pivot low at $ 22.17.
On the flip side, silver could pave the way for further uptrend if silver recovers the price of $ 24.00. Initial resistance would be the September 3rd swing high of $ 24.87, immediately followed by $ 25.00.