Silver consolidates Monday’s gains into a new range above $ 24.50

• Silver spot prices are currently trading just above $ 24.50 as the precious metal consolidates Monday’s gains.
• Real yields remain under pressure, keeping precious metals supported.

Silver Spot Prices (XAG / USD) they are consolidating in a new range above the $ 24.50 level as the precious metal clings to solid gains made on Monday. As it stands, the precious metal is trading flat just above $ 24.50.

Precious metals remain supported as bond yields experience further declines

Bond yields on both sides of the Atlantic are seeing a further decline Tuesday amid the most tentative market mood. German 10-year yields are nearing November lows and are back below -0.6%, down about 3bps on the day, while US 10-year yields have retreated to 0.90% and they are also down 3 bp on the day. With US inflation expectations largely stable at the mid-1.8%, real yields have also come under further pressure, with the US 10-year TIPS yield falling to lows since September below -0.98%.

The bottom line here is that inflation expectations remain high (helping to support precious metals as a hedge against future currency devaluation due to inflation), and that real returns on investments in U.S. bonds (and investments in bonds in other countries) remain deep in negative territory. which enhances the attractiveness of precious metals as an alternative investment.

XAG / USD establishes a new range above $ 24.50

Since breaking above the $ 24.30-$ 24.40 resistance on Monday, spot silver has formed a new range with this previous area of ​​resistance acting as support. If this were to happen, the 21-day moving average at $ 24.13 would come into play, as would the psychological level of $ 24.00 and the 50-day moving average just below it $ 23.95. On the upside, the main level to watch out for is the psychological mark of $ 25.00 just above Tuesday’s highs of $ 24.80.

Four hour chart