XAG/USD makes a fresh YTD high around $25.70 on safe-haven appetite
- XAG/USD rallies nearly 2% on the day while setting its sights on another YTD high as Wall Street draws closer.
- The US jobs report, although positive, was ignored by market participants.
- XAG/USD Technical Outlook: Bullish and it may extend the rally if a daily close above $25.67.
Silver (XAG/USD) remains buoyant as traders head into the weekend after making a fresh YTD high around $25.70. For the week so far, the white metal is up 5.59%, its biggest gain since May 2021, although it appears to be calming as the New York market close approaches. At the time of writing, XAG/USD is trading at $25.67.
In the early North American session, the US Department of Labor reported that the US economy added 678k jobs in the labor market, versus 440k estimates after a 467k gain in January. Silver dealers’ reaction was muted. It usually has a more significant impact on the market, but jitters between Ukraine and Russia are catching investors’ attention.
Following the release of the US Nonfarm Payrolls report, Chicago Fed President Charles Evans said payrolls had been reasonable for some time, noting a “tremendous level” of uncertainty surrounding the Russia-Ukraine conflict. In addition, Evans stated that it was “more than necessary” to raise rates by 25 basis points at each meeting.
Global equity markets continued to trade lower, preparing for one of their worst weeks in a long time. Meanwhile, US Treasuries remain bid amid safe-haven appetite, weighing on US Treasury yields. The benchmark 10-year bond is down 10 basis points to 1.743%, a tailwind for non-yield metals like silver and gold, which fall in value as yields rise.
On the forex side, the dollar is bid, as shown by the US Dollar Index, up 0.84% to 98.541.
XAG/USD Price Prediction: Technical Outlook
XAG/USD probes daily high of Feb. 24 at $25.62, tested twice unsuccessfully. If XAG/USD bulls can make a daily close above it, a move towards $26.00 is possible. However, silver bulls would face several levels of resistance on their way north.
The first resistance by XAG/USD would be the $26.00 level. A breach of the latter would reveal the July 16, 2021, daily high of $26.45, followed by the July 6, 2021, daily high of $26.77.