XAG/USD clings above $25.50 while target is $26.00

  • Precious metals are benefiting from a risky market environment amid high US Treasury yields.
  • US President Biden has backed more NATO troops in Eastern Europe while calling on Russia to be removed from the G-20 group.
  • XAG/USD Price Prediction: The decisive break above $25.40 could lead to a move towards $26.00 and beyond.

As the Asia-Pacific session begins, silver (XAG/USD) gains for the second day in a row, but retreated from daily highs around $25.85, amid strong US Treasury yields and rising US Treasury yields. an optimistic market. At the time of writing, XAG/USD is trading at $25.55.

Global equities were mixed overnight, with European stocks fluctuating, while US stock indices ended Wall Street with gains. Talks between Russia and Ukraine have stalled, prolonging the war for a fourth consecutive week. Meanwhile, the two-day NATO summit has begun. It should be noted that US President Joe Biden has supported increasing NATO troops on the eastern front, a senior US official reported. Additionally, Biden and European NATO members assessed the risks of Russia launching a biological, chemical or nuclear attack, while Biden called for Russia’s withdrawal from the G-20.

The US Dollar Index, a gauge of the greenback’s value against a basket of peers, was supported throughout the day, up 0.18% to 98.789, buoyed by strong returns from the US Treasury. The yield on the 10-year benchmark notes hit five basis points at 2.370%, limiting the XAG/USD rally.

Gold (XAU/USD) is also up on the day, around 0.68%, at $1957.88 per troy ounce, despite strong US Treasury yields.

Other than that, Fed speakers continued to make headlines. Chicago Fed Chairman Charles Evans said he was “comfortable” with 25 basis point increases in the federal funds rate, but remains “open” to 50 basis point increases if necessary. Earlier, Minnesota Fed Chairman Neil Kaskari said 10-year Treasury yields remained low while stressing the risk of overdoing it on rate hikes. Kashkari further added that neutral rates

XAG/USD Price Prediction: Technical Outlook

The bias for silver (XAG/USD) is still to the upside. As mentioned in yesterday’s note, “On Monday, the 50-day moving average (DMA) broke above the 200-DMA, forming a golden cross, a bullish signal that, although lagging, could open the door for further gains on XAG/USD.”

On Thursday, XAG/USD broke through the November 16, 2021 resistance level at $25.40, leaving it as support. That said, the first resistance for XAG/USD would be the March 24 daily high at $25.85. Once clear, the next supply zone would be August 4, 2021, a daily high at $26.00, followed by July 16, 2021, at $26.45.

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