- XAG / USD climbs for the second day in a row amid positive US economic data.
- The US dollar is falling, supported by falling US Treasury yields, boosting precious metals.
- XAG / USD: Daily close above 100-DMA opens the door at $ 25.00; otherwise, it could drop to $ 23.00.
Silver (XAG / USD) is advancing for the second day in a row, up 1.08% to $ 24.02 in the New York session at the time of writing. Positive US employment data improves market sentiment, equity markets rise, while US Treasury bond yields fall, benefiting precious metals.
The US Bureau of Labor Statistics (BLS) on Friday revealed its report on nonfarm wages for October, which signaled the creation of 531,000 new jobs added to the economy, higher than the 425,000 forecast by economists. In addition, the unemployment rate fell from 4.7% to 4.6%, while participation in the labor market remained unchanged.
The market reacted positively to the report, bouncing US stocks as US Treasury bond yields plummet, with the 10-year benchmark sliding six basis points to 1.465% for the first time below the threshold 1.50% since October 4.
On the greenback, the US dollar index which measures the US dollar against six rivals fell 0.06% to 94.28, supported by lower yields on the US Treasury.
XAG / USD Price Prediction: Technical Outlook
In the daily chart, XAG / USD broke the upper trendline of a bullish flag, approaching the 100-day moving average (DMA) at $ 24.18. Additionally, the Relative Strength Index (RSI), a momentum indicator, is edging up to 57, with enough margin, before reaching overbought conditions. A daily close above the 100-DMA could propel the price of silver to the 2021 high at $ 24.85, followed by the possibility of a test of $ 25.00.
On the other hand, not going over 100-DMA and staying 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.