Silver Price Forecast: XAG/USD climbs above $24.00 despite high US T-bond yields

• XAG/USD reclaims $24.00 on broad US dollar weakness across the board.
• The market sentiment is mild-negative, portrayed by US equities, with just the Dow Jones rising.
• XAG/USD: From a technical perspective, silver is tilted to the upside, but as risk events lie ahead, caution is warranted.

Silver (XAG/USD) edges higher during the New York session, gains 0.60%, trading at $24.00 at the time of writing. A weaker greenback despite higher US T-bond yields with the 10-year note rising two and a half basis points at 1.579% boosts the precious metal, in line with gold, which is also advancing 0.65% at press time.

The market sentiment is mixed as US stock indices fluctuate between gainers and losers amid absent European traders, as the Eurozone observes a holiday. Furthermore, inflation has been the trend in the last couple of weeks.

This week, three major central bank monetary policy meetings would give investors the general overview of policymakers, which could spur movement in silver. If policymakers view inflation as temporary, this could trigger safe-haven asset buying as a hedge for inflation, as that would indicate that central banks would extend the easy money cycle. On the other hand, a hawkish tone in the Reserve Bank of Australia, the Federal Reserve, and the Bank of England could send yields higher, which would weaken XAG/USD. 

XAG/USD Price Forecast: Technical outlook

4-hour chart

Silver price broke beneath an upslope support trendline, which now turned resistance, that would spur a bearish signal, but at press time, XAG/USD is pressuring to regain above it. Furthermore, a bullish flag was broken to the upside, confirming the upward bias. 

Nevertheless, the confluence of the upward slope trendline and the 50-simple moving average at $24.14 would oppose strong resistance for XAG/USD bulls, who would need a break above the latter to spur an upside move towards the October 22 high at $24.80.

On the flip side, failure at the abovementioned could send silver tumbling towards the 100-simple moving average (SMA) at $23.60.

The Relative Strength Index (RSI), although slightly flattish at 49, suggests a downward bias, but there is  a slight positive divergence, which means the price is headed to the upside