XAG / USD slips nearly 1% to $ 22.22
- The white metal is falling as the US 10-year bond yield rises nearly six basis points, underpinning the greenback.
- The US dollar index, which measures the dollar’s performance against six competitors, is up nearly 0.25%.
- The XAG / USD 1 hour chart is showing a downward bias as the hourly simple moving averages (SMAs) above price show.
Silver (XAG / USD) is pulling back from Friday’s gains, breaking nearly 1% and trading at $ 22.22 during the New York session at the time of writing. Safe-haven assets like silver are prolonging losses amid reports that the Omicron variant of COVID.19, while contagious, appears to be causing mild symptoms, driving stock prices higher.
In addition, US bond yields, which are inversely correlated to precious metals prices, are rising, a headwind for non-profitable investments. The 10-year US Treasury yield rose five basis points to 1.397%, supporting the greenback, while the US dollar index rose 0.23% to 96.414.
In the night session, the white metal peaked around the 1-hour 100 simple moving average (SMA) at $ 22.58, then expanded its losses as the day wore on and fell to $ 22.10 and rebounded to the current one Price.
XAG / USD Price Prediction: Technical Outlook
Silver (XAG / USD) on the 1-hour chart is showing a bearish bias due to the simple 1-hour moving averages (SMAs) above the spot rate. Also, the confluence of the 50 SMA and the daily central pivot point at $ 22.37, which has been tested three times with no success, appears to be a strong selling level for XAG / USD bears.
If stretched further down, initial support would be the S1 daily pivot at USD 22.16. Breaking below this level would reveal critical support levels. Friday’s low is $ 22.01, followed by the daily S2 pivot at $ 21.81.
On the flip side, the December 3rd confluence and the 100 SMA around $ 22.51-56 would be the first resistance, followed by the R1 pivot at $ 22.72, followed by the R2 daily pivot at 22.92 $.