XAG/USD recovers to $25.50

• Silver has seen a decent rise on Monday amid China lockdown and geopolitical concerns, ignoring the headwind of rising yields.
• XAG/USD has risen back to around $25.20, over 40 cents, and is targeting late March highs of $25.85.
• Speeches from Fed members and US inflation will be in the spotlight this week and could test bullish conviction.

Risk trading in global equities as markets fret over recent news on the Russo-Ukrainian war and the risk of further expansion of lockdowns in China has offset the negative impact of a continued sharp rise in global yields. in the precious metals markets. Indeed, while US 10-year yields have risen another 3-4 basis points to a new multi-year high above 2.75%, raising the opportunity cost of holding non-yielding assets (such as precious metals), silver (XAG/USD) trades with impressive gains on the day of more than 1.7%.

XAG/USD has risen more than 40 cents from opening levels near $24.75 to current levels around $25.20 and in doing so broke north of its 21-day moving average at $24.92. Technical buying on the break above a downtrend that had been in play since early March certainly seems to have helped. The bulls will now be eyeing a test of the late March highs at $25.85 before a possible run to last month’s highs near $27.00.

But silver bulls are yet to declare victory for the week, given the myriad of key event risks ahead. A flurry of Fed policymakers will speak in the coming days (with a total of four appearing on Monday alone) and are likely to reiterate recent aggressive messages. But the main event of the week will be the release of US consumer and producer price inflation data on Tuesday and Wednesday which, if they surprise to the upside, could put even more pressure on the Fed to be aggressive.

Technical levels