Silver Price Forecast: XAG/USD steady above $25.00, found strong resistance at the 200-DMA

• XAG/USD extends its two-day rally, amid thin liquidity conditions, despite US dollar strength.
• Silver is rising as long as US Real Yields keep falling, sitting at -1.85 as of November 10.
• XAG/USD Technical outlook: If it breaks above the 200-DMA, a move towards $27.00 is on the books.

Silver (XAG/USD) climbs to three-week tops, advances 2%, trading at $25.20 during the New York session at the time of writing. The market mood is mild-risk on, as witnessed by US stocks fluctuating between gainers and losers amid thin liquidity conditions, with the US bond market closed in observance of the Veterans Day holiday.

Despite broad US dollar strength across the board, with the US dollar index rising above 95.00 for the first time since July 2020, the white metal keeps rising. Higher US inflation readings, topping above 6% for the first time in three decades, spurred flows towards precious metals, which have been an inflation hedge over time, so that’s why silver has advanced 4.90% in the last two days.

Furthermore, US T-bond nominal yield has risen as inflation rises, but real yields keep falling, sitting at -1.85 as of November 10. Therefore, as long as real yields fall, silver is tilted to the upside in the near term but has some strong resistance levels to overcome.

XAG/USD Price Forecast: Technical outlook

Daily chart

XAG/USD is hovering around the midline of Andrew Pitchfork’s indicator. However, it is approaching a robust resistance area that would be difficult to surpass at the confluence of the 200-day moving average (DMA) at $25.32 and a downslope resistance trendline that passes near the 200-DMA.

If silver bulls break above the abovementioned, a move towards $27.00 is on the cards, but it would find some hurdles on the way north. The first resistance would be $26.00. A breach of that level would expose the July 6 high at $26.75, followed by the psychological $27.00.

On the flip side, failure at the abovementioned would open the door for a lower correction towards the 100-DMA at $24.12.