- The white-metal extends its gains for three days, up some 0.22%.
- Falling yields and risk-aversion boost the precious metal’s prospects and weaken the buck.
- XAG/USD Technical Outlook: Slightly tilted to the upside but needs to reclaim the $23.50 region.
Silver (XAG/USD) barely advances during the New York session, though it extends its gains for the third consecutive day, trading at $22.53 at the time of writing. The market sentiment is downbeat as portrayed by global equity indices falling, while US T-bond yields continue their post-Fed free fall, with the 10-year Treasury yield down three basis points, sitting under 1.40%.
In the meantime, the US Dollar Index, which measures the greenback’s performance against a basket of six peers, is up 0.28%, currently at 96.32.
Factors like a risk-off environment and falling US T-bond yields underpinned the non-yielding metal. Silver bulls are eyeing a break above the December 6 swing high at $22.59. Once decisively broken, it could send XAG/USD rallying towards the confluence of the 50 and the 100-day moving averages (DMAs) around $23.45-50. However, they would face medium resistance around the $23.00 threshold.
The Relative Strength Index (RSI), a momentum indicator around 45, aims to the upside, would support a bullish bias; nevertheless, caution is warranted as RSI remains below the 50-midline, failing to trigger a bullish signal.
On the other hand, failure at $23.00 could send XAG/USD tumbling. The first demand zone would be the December 16 swing low at $21.90. The breach of the latter would expose crucial support levels, as the December 15 low at $21.40, followed by the YTD low on September 30 at $21.33.
Daily chart
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This article was originally published by Fxstreet.com.Read the original article here.
