Silver Price Forecast: XAG/USD's rally stalled at the 200-DMA around $25.10, hovers around $24.80

• XAG/USD upward move, stalled around the 200-DMA, retreats $0.30, to $24.89.
• XAG/USD extends its slump to two days driven by broad US dollar strength across the board.
• Higher US bond yields weighed on the non-yielding metal.

Silver (XAG/USD) struggled at the 200-DMA around $25.10, slides below $25.00 for the first time in three days, down some 1.20%, trading at $24.80 during the New York session at the time of writing. The market mood is upbeat in the financial markets, spurred by good US macroeconomic data that produced a rally in US stocks. Further, the 10-year Treasury yield is barely flat in the US bond market, up one basis point sitting at 1.628%.

In the New York session, the US Retail Sales for October increased by 1.7%, more than the 1.4% foreseen by analysts, smashing the 0.8% September’s number. Excluding Autos, retail sales for the same period expanded at the same pace that the headline, 1.7%, higher than the 1% estimated.

It is the most significant jump in retail sales since March 2021 figures. Though it is worth noting that the figures are not adjusted for inflation, reflecting price adjustments passed to the consumer. 

Moving back to XAG/USD, in the Asian Pacific session, the white metal remained subdued in a narrow trading range within the $25.00-25 area. However, once US economic data crossed the wires, the white-metal seesawed between the high and the low of the day at that time, finally settling below Monday’s low around $24.80.

Furthermore, broad US dollar strength across the board has weighed on the non-yielding metal, with the US Dollar Index advancing some 0.30% in the day, sitting at 95.80, acting as a headwind for silver.

XAG/USD Price Forecast: Technical outlook 

Silver is approaching the mid-line of Andrew Pitchfork’s indicator in the daily chart, around the October 22 high at $24.83. Further, that support area, which was previous resistance, was unsuccessfully tested three consecutive days, meaning that XAG/USD buyers could view the opportunity to open fresh bets against the US Dollar.

However, in the outcome of breaking below the abovementioned support, the following support would be $24.50, followed by the 100-day moving average at $24.14.