- Over the past hour, silver has surged to a new YTD high of $26.94.
- Somber market sentiment and the commodities market rally keeps precious metals bid and weighing on the greenback.
- XAG/USD Technical Outlook: Sloping up and once clear of $27.00 next resistance would be above $28.00.
Silver (XAG/USD) rebounds for the first time this week making a new YTD high around $26.94 and pushing down the $27.00 level. At the time of writing, XAG/USD is trading at $26.64
Market sentiment is slightly higher on the back of the ceasefire between Russia and Ukraine over the evacuation of civilians. Still, market participants’ concerns sparked a double-digit rally across the commodity complex, led by oil, with WTI at $125 a barrel. In the metals complex, gold surges above the $2000 mark and base metals such as nickel are up almost 250%, causing trading to halt.
Global equity markets are trading lower for a second straight day as US Treasury yields are rising, with the benchmark 10-year bond trading at 1.858% up to 10 basis points, but this is ignored by precious metals traders. In contrast, the greenback has been hit by an appetite for the safe-haven precious metals complex, with the US Dollar Index down 0.28% and holding its nails at the 99.00 level.
The US Economy List showed trade balance for January, which came in at $89.7 billion, worse than the estimated $87.1 billion. In the same report, exports fell while imports increased, in a report that received less attention than expected.
XAG/USD Price Prediction: Technical Outlook
Silver is trending up. The daily chart shows the moving averages well below the spot price, with the 200-DMA coming closest to price at $24.12, followed by the 50-DMA and the 100-DMA.
With XAG/USD in full swing, first resistance would be July 5, 2021, daily high at $26.77. A breach of the latter would expose the $27.00 level. After clearing, there is no resistance until June 11, 2021, a daily high of $28.28, followed by May 18, 2021, a daily high of $28.75, on the way towards $29.00.
On the upside, XAG/USD first support would be Nov 16, 2021 daily high resistance turned into support at $25.40.
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