Silver Price Analysis: XAG/USD keeps hovering above $23.00
18.10.2021, 18:45

Silver Price Analysis: XAG/USD keeps hovering above $23.00

  • Silver futures, trading flat near one-month highs at $23.55.
  • Precious metals remain weighed amid higher US T-Bond yields.
  • XAG/USD: Positive while above $23.00.

Silver futures have been trading without a clear direction on Monday, steady above $23.00, and a short distance to one-month highs at $23.55. Upside attempts, however, have been capped below $23.45, as the US dollar remains firm amid higher US T-Bond yields.

Fed tapering expectations weigh on metal prices

Silver and other precious metals have opened the week on a slightly negative tone, with the US dollar supported by higher US Treasury bond yields. Investors’ expectations of an upcoming announcement of QE tapering, and rising speculation about higher interest rates in 2022 are pushing US bond yields higher, making the US dollar a more attractive hedge from inflation than precious metals.

The US 10-year yield has ticked up to 1.57% from 1.55% on Friday, while shorter-term notes, such as the 5-year yield surging to 20-month highs at 1.19% after having rallied for the last two weeks.

XAG/USD: remains positive while above $23.00

From a technical perspective, the pair remains positive above previous highs, at $23.00, with the focus on the September 14 and 15 highs, at $23.55 September 16 high at $24.00.

On the downside, a reversal below $23.00 (September 22, October 8 highs) might ease bullish pressure, and open the path towards 22.20/35 (October 6 and 12 lows) ahead of year-to-date lows at $21.40.

Technical levels to watch

 

 

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