Silver Price Forecast: XAG/USD trades at a seven-week low below $22.85

• The market sentiment has slightly improved, though it failed to lift silver prospects, which fell to a seven-week low.
• The US Dollar Index advances 0.32%, sitting at 96.39, following the US 10-year Treasury yield footsteps, up to 1.514%.
• XAG/USD Technical outlook: Failure to reclaim last’s Friday low at $22.89 could send silver tumbling towards $22.32.

Silver (XAG/USD) spot extends last week’s Friday decline, trading below the former low at $22.84 during the New York session at the time of writing. Market sentiment has improved, throughout the weekend, after Friday’s turmoil in the financial markets. According to South African health authorities, the COVID-19 omicron variant, although it has more mutations than the alpha and the prevailing delta variant and seems to spread more quickly, causes mild symptoms in young and healthy people.

On Friday's COVID-19 omicron variant news, spurred silver's fall below $23.00

Despite the abovementioned, the white metal keeps extending its downfall, after collapsing more than $0.80, on COVID-19 omicron variant news, amid broad US dollar weakness. At press time, the story is different, with the greenback advancing 0.32%. The US Dollar Index that measures the greenback’s value against its peers sits at 96.39.

US bond yields lick their wounds in the bond market after posting heavy losses in the last week. The US T-bond 10-year benchmark note rises three basis points, sitting at 1.514%, while the US10-year Treasury Inflation-Protected Security (TIPS) rises to -1.06%, weighing on precious metals prices, like silver and gold.

In the US macroeconomic docket, Pending Home Sales for October on a monthly basis rose by 7.5%, higher than the 2.3% drop witnessed in September. On a yearly basis, for the same period, it shrank 1.4%, better than the 8% contraction in the last year.

Later the US economic docket will feature the Federal Reserve Chairman Jerome Powell, at 20:05 GMT, who could offer fresh impetus to commodity traders, amid cautious market sentiment surrounding the financial markets.

XAG/USD Price Forecast: Technical outlook

Silver in the 1-hour chart depicts the white metal has a downward bias, as the hourly simple moving averages (HSMA’s) with a downslope reside well above the spot price. At press time, it is trading below the November 26 low at $22.90, as XAG/USD sellers are pushing prices towards a daily low below the S1 pivot point at $22.75.

In the outcome of XAG/USD extending its free fall, the first support would be the S2 pivot point at $22.42, followed by the October 12 daily swing low at $22.32.

On the other hand, the psychological $23.00 would be the first resistance. A breach of the latter would expose the central daily pivot point at $23.23, followed by the 50-HSMA at $23.39.