Silver Price Analysis: XAG/USD stable to the north of $25.50 level amid broadly subdued market tone

• Silver stabilised above the $25.50 area on Friday amid a broadly subdued tone to trade across markets.
• Upcoming Fed speak and US data probably won’t impact markets much, with $26.00 likely to continue acting as a ceiling.

Spot silver (XAG/USD) prices have stabilised to the north of the $25.50 per troy ounce area on Friday amid a broadly subdued tone to trade across markets with conditions winding down ahead of the weekend. US bond markets have stabilised with yields broadly unchanged on the day but remaining close to recently hit multi-year highs, while FX markets are not seeing a great deal of action (apart from the yen gaining some ground as traders take profits on recent shorts). In pre-market trade, meanwhile, US equity markets are enjoying a further push higher led by the tech sector, but this doesn’t appear to be burnishing silver’s safe-haven appeal.

The week isn’t over just yet, with influential Fed policymakers Christopher Waller and John Williams scheduled to speak later in the session and US February pending home sales and March Michigan Consumer Sentiment survey data set for release. Rhetoric from Fed members this week has been hawkish leaning and Waller and Williams are unlikely to deviate from this line. This shouldn’t impact silver much, given there has been plenty of time by now for traders to price in Fed hawkishness.

The outlook for a fresh push higher in XAG/USD before the weekend probably isn’t the best. A test of Thursday’s weekly highs in the $25.80s is a possibility, but selling pressure ahead of the $26.00 level may well continue to cap the price action. To the downside, previous highs from recent session in the $25.50 area should continue to offer support, as has already been the case in recent hours.