XAG / USD stable at $ 24.00 amid positive US NFP report
- XAG / USD rises for second straight day amid positive US economic data.
- The US dollar is falling, supported by falling US Treasury bond yields, which are boosting precious metals.
- XAG / USD: A daily close above the 100 DMA opens the door for $ 25.00; Otherwise, it could drop to $ 23.00.
Silver (XAG / USD) is up for the second straight day, rising 1.08% and trading at $ 24.02 during the New York session at the time of writing. The positive US labor market data improves market sentiment, equity markets rise, while US T-bond yields fall, benefiting precious metals.
On Friday, the U.S. Bureau of Labor Statistics (BLS) released its report on non-farm payrolls for October, which reported the creation of 531,000 new jobs in the economy, more than the 425,000 economists expected. In addition, the unemployment rate fell from 4.7% to 4.6%, while the labor force participation rate remained unchanged.
The market responded positively to the report, causing US stocks to rally while US T-bond yields plummeted.
On the greenback, the US dollar index, which measures the US dollar against six competitors, was down 0.06% to 94.28 on the back of falling US government bond yields.
XAG / USD Price Prediction: Technical Outlook
On the daily chart, XAG / USD broke the top trendline of a bullish flag and approached the 100-day moving average (DMA) at $ 24.18. The Relative Strength Index (RSI), a momentum indicator, also climbs up to 57 and still has plenty of headroom before reaching overbought conditions. A daily close above the 100 DMA could push silver towards the 2021 high at $ 24.85, followed by the possibility of testing at $ 25.00.
On the downside, failure to break the 100 DMA and hold it above $ 24.00 could open the door to further losses. The first support would be the 50 DMA at $ 23.35, followed by $ 23.00.