Silver Price Forecast: XAG/USD marches firmly on to try to break the 200-DMA at $24.26
|- Silver recorded gains during the week, up some 1.30%, despite rising US Treasury yields.
- Market players ignored positive US macroeconomic data in favor of geopolitical headlines.
- XAG/USD Technical Outlook: Neutral-upward, and if it achieves a daily close above $24.00, a move towards the 200-DMA is on the cards.
Silver rally extends to four consecutive trading sessions notwithstanding rising tensions in the Russia/Ukraine conflict. At press time, XAG/USD is trading at $24.20.
In the meantime, the US 10-year Treasury Note yield rises almost two basis points to sit at 1.948%, failing to weigh on the white metal, benefited by heightened tensions in Ukraine.
Appetite for safe-haven assets has increased in the last couple of weeks due to uncertainty in Eastern Ukraine. In the case of silver, the non-yielding metal rose to a four-week high but soon will face strong resistance at the 200-day moving average (DMA) at $24.26.
US Markit PMIs came better than expected, while Consumer Confidence falls
During the North American session, some US macroeconomic news crossed the wires. The US Markit Manufacturing and Services PMI for February rose more than expected. The former increased to 57.5 vs. 56.0 estimations, while the latter rose 56.7 vs. 53.0 foreseen. The Markit Composite Index, a measure of both readings, expanded to 56.0 from 51.1 January’s reading.
Later, the Conference Board released the Consumer Confidence for the same period as the abovementioned economic indicators. Consumer confidence rose by five-tenths from 110.0 to 110.5, as foreseen but trailed January’s 113.8.
Market players did not react to the abovementioned data, as their primary focus was on geopolitical tussles.
XAG/USD Price Forecast: Technical outlook
The silver daily chart depicts a neutral-upward bias after the broken ten-month-old downsloping trendline, exposing the 200-DMA at $24.26. Nevertheless, a daily close over the abovementioned trendline would be required so that XAG bulls could use the $24.00-20 area as consolidation as they prepare to break the 200-DMA.
If the aforementioned scenario plays out, XAG/USD’s first resistance would be $24.26. A breach of the latter would expose the January 20 daily high at $24.70. Once cleared, the $25.00 mark would be the next roof. A decisive break would send XAG/USD rallying towards the November’s 2021 highs at $25.40.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.