XAG / USD is pushing against the USD 24.00 support area
- Silver is pulling back from a high of $ 24.50 and testing support in the $ 24.00 area.
- Precious metals are falling as the USD rallies on inflation concerns.
- XAG / USD remains positive while it is above $ 23.40.
Silver futures test the $ 24.00 support after pulling back from a six-week high of $ 0.24.50 weighed down by a stronger US dollar as the risk rally comes to an end.
Metal prices are pulling back inflation fears
Precious metals trade lower on Friday as higher inflationary pressures returned to the market, boosting US Treasury bond yields and ultimately fueling demand for the US dollar.
The US benchmark 10-year bond yield rose 1.68% to fresh 4-month highs Thursday, with investors expecting persistently high inflation to force the Federal Reserve to accelerate its policy normalization plan.
The US dollar index, which measures the value of the dollar against a basket of most traded currencies, is up about 0.2% today after falling for five days from its year-to-date high of 94.54.
XAG / USD: remains positive while above $ 23.40
In a broader sense, silver futures remain positive as they hover above $ 23.40 where trendline support from the late September lows and the 50-period SMA meet. Below that, the next potential targets could be at $ 23.00 (October 18th low) and $ 22.20 / 35 (October 6th and 12th low).
On the downside, a bullish reaction above $ 24.45 (intra-day high) would pave the way to early September highs of $ 24.80 and $ 25.20 (August 3rd and 4th lows).