- The white metal drops about 0.54% at press time in the New York session.
- Falling US Treasury yields and domestic US political issues are plaguing the US dollar.
- XAG / USD Price Prediction: Neutral bearish bias, as long as it stays below Dec 13 high at $ 22.40.
Silver (XAG / USD) fails to capitalize on falling US bond yields, retreating below December 17 day low, trading at $ 22.26 in the New York session at the time of writing. An hour after the opening of Wall Street, market sentiment is down, as evidenced by the fall in US stock indices. At the same time, US President Biden’s Build Back Better program was torpedoed by Democratic Senator Joe Munchin, rolling back his support for a $ 2 trillion package in taxes and spending as the end nears. of the year, pushing the discussion to next year.
That said, US Treasuries lose over the day, with the 10-year Treasury yield falling 1.7 basis points, currently at 1.385%, weighing on the US dollar index, down 0. 24%, at 96.34.
Despite the above, XAG / USD failed to capitalize on an upward move which could be attributed to technical move as the white metal faced strong resistance around $ 22.60.
XAG / USD price prediction: technical outlook
Hourly silver chart shows the unproductive metal has a neutral bearish bias, as long as it stays below the December 13 high at $ 22.40 even though it was facing support around the confluence of the 100 and 200 hour simple moving averages. (SMA) around the $ 22.18-20 region. The latest one-hour candle attempted a break above the December 17th swing at $ 22.34, dampening the move and pulling back below the S1 daily pivot.
The absence of a catalyst would keep XAG / USD in the $ 22.18-35 range. If there is a further decline, the first support would be the 200 hour SMA at $ 22.20. A decisive breach of the latter would open the door towards $ 22.00, followed by a challenge of the S3 daily pivot at $ 21.93.