Silver Price Forecast: XAGUSD steady below $19.00 capped by high US T-bond yields

• Silver extends its gains to three straight days but remains beneath $19.00.
• The white metal remains on the defensive as US Treasury yields rise.
• Silver Price Forecast (XAGUSD): Buyers need to reclaim $20.46; otherwise, downside risks remain.

Silver (XAGUSD) seesaws around $18.76 amidst a risk-on impulse that kept the white metal almost unchanged, despite broad US dollar weakness, which usually lifts precious metal prices, but higher US Treasury yields put a lid on XAGUSD price. At the time of writing, XAG USD is trading at 18

XAGUSD began Tuesday’s trading session around $18.69 but dipped towards the daily low at $18.50 before bouncing off to the confluence of the 200-hour EMA and the R1 pivot daily high at around $18.90-95. Nevertheless, once the dust settled, the XAGUSD retreated to current levels. At the time of writing, XAGUSD is trading at $18.76.

XAGUSD is almost unchanged due to high US bond yields

Global equities are trading in positive territory, shrugging off Apple’s news that will slow hiring. US corporate earnings dominate the headlines, particularly what they are expressing in the earnings calls that could update businesses’ outlooks amidst a global central bank tightening. In the meantime, the US Dollar Index continues its nose-dive, losing 0.70%, sitting at106.662.

In the meantime, XAGUSD remains on the defensive due to US Treasury yields, led by the US 10-year benchmark note rate, which yields 3.012%, gaining three bps. Additionally, US Real yields, as depicted by the US 10-year TIPS, sit at 0.614%, up almost three bps.

Data-wise, the US economic docket featured US housing data, showing an ongoing slowdown in higher mortgage rates, sparked by the US Federal Reserve lifting rates. US Housing Starts shrank by 2% MoM in June, while Building Permits followed suit, contracting 0.6%. At the time of writing, a 30-year fixed-rate mortgage sits at 6%, up from 3.3% at the beginning of the year.

What to watch

In the week ahead, the US economic docket will feature Existing Home Sales expected to contract, in line with Housing Starts and Building Permits.

Silver Price Forecast (XAGUSD): Technical outlook

Silver (XAGUSD) remains downward biased. The daily EMAs above the spot price confirm the aforementioned. Furthermore, XAGUSD’s price action remaining below the May 13 cycle low at $20.46 keeps the white metal exposed to selling pressure unless XAGUSD buyers reclaim the previously mentioned price level.

IF XAGUSD would like to reclaim $20.46, first, they need to conquer the $19.00 figure. Once cleared, the next resistance would be the 20-day EMA at $19.74, followed by the $20.00 figure. A breach of the latter will send silver towards $20.46. Otherwise, XAGUSD’s first support would be YTD low at $18.14. Once cleared, the next support would be $18.00.