Silver Price Forecast: XAG/USD bull’s eye $25.00 despite high US T-bond yields
- Silver reached a fresh two-week high at around $25.37 but fell on high US bond yields.
- Geopolitics, Fed tightening, and China’s PMIs showing its economy might slow dampen the market mood.
- Silver Price Forecast (XAG/USD): The white metal is upward biased and would aim towards $26.00 if XAG bulls reclaim $25.00.
Silver (XAG/USD) is gaining on Monday as the New York session progresses, but off highs after reaching a $25.37 daily high, pushing below the $25.00 mark on surging US Treasury yields amidst a negative market sentiment. At the time of writing, XAG/USD is trading at $24.99, up some 0.91%.
Falling US equity indices portray the abovementioned market sentiment. Factors like the Fed tightening monetary policy conditions amidst an elevating inflation environment weigh on market sentiment. The Russo-Ukraine tussles extending for the seventh-consecutive week and China’s Covid-19 outbreak in the second-largest economy keep investors on their toes.
US 20-year yield breaks the 3% threshold
Higher US Treasury yields put a lid on the white-metal rise. The 20-year US Treasury yield rose above the 3% threshold, while the US 10-year benchmark note sits at 2.780%, up to seven and a half basis points, a tailwind for the buck.
The US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, is barely flat at 99.929, but it was above the 100.000 mark.
The US economic docket is absent on Monday, but on Tuesday, inflationary figures for March are expected to uptick, with the Consumer Price Index (CPI) rising towards 8.4%. Meanwhile, the so-called core CPI, which excludes volatile items, is estimated to increase by 6.6%.
Silver Price Forecast (XAG/USD): Technical outlook
XAG/USD remains upward biased, as shown by the daily chart. The daily moving averages (DMAs) below the spot price confirm the previously mentioned. The Relative Strenght Index (RSI) at 53.52 is aiming higher, cementing the uptrend.
That said, XAG/USD’s first resistance would be $25.00. a breach of the latter would expose the March 31 swing high at $25.09, followed by March 24 pivot high at 25.85, and then the $26.00 mark.
