Silver Price Forecast: XAG/USD reaches a new YTD high and approaches $27.00

• In the last hour, silver surged and reached a new YTD high at $26.94.
• A dismal market mood and the commodities market rally keep precious metals bid, weighing on the greenback.
• XAG/USD Technical Outlook: Upward biased, and once cleared $27.00, the next resistance would be above $28.00.

Silver (XAG/USD) rallies for the first time in the week and reaches a new YTD high of around $26.94, pressing towards the $27.00 mark. At the time of writing, XAG/USD is trading at $26.64

The market sentiment is slightly up due to the cease-fire between Russia and Ukraine on the evacuation of civilians. Nevertheless, market participants’ worries spurred a double-digit rally across the commodities complex, led by Oil, with WTI sitting a $125 per barrel. In the metals complex, gold is rising above the $2000 mark, and base metals like nickel spiked almost 250%, spurring a halt on its trading.

Global equity markets trade in the red for the second consecutive day while US Treasury yields rise, with the 10-year benchmark note at 1.858%, up to ten basis points, though ignored by precious metals traders. Contrarily the greenback is getting hit by an appetite for the safe-haven precious metals complex, with the US Dollar Index dropping 0.28% clings with its nails to the 99.00 mark.

The US economic docket featured the Trade Balance for January, which came at $-89.7B, worse than the $-87.1B estimated. In the same report, Exports decreased while Imports incremented, in a report with lower attention than expected.

XAG/USD Price Forecast: Technical outlook

Silver is upward biased. The daily chart shows that the moving averages reside well below the spot price, with the 200-DMA at $24.12 being the nearest to the price, followed by the 50-DMA and the 100-DMA.

With XAG/USD in full swing, the first resistance would be July 5, 2021, a daily high at $26.77. Breach of the latter would expose the $27.00 mark. Once cleared, there is no resistance until June 11, 2021, a daily high at $28.28, followed by May 18, 2021, a daily high at $28.75, on its way towards $29.00.

On the flip side, XAG/USD’s first support would be the November 16, 2021, daily high resistance-turned-support at $25.40.