XAG / USD rises to new monthly highs and targets a move to $ 23.00

• Spot Silver is currently trading below weekly highs at $ 22.80, having pushed higher on Wednesday.
• A weaker dollar and lower yields despite strong US data is boosting precious metals.
• A test of the resistance at $ 23.00 is on the table, but it can be seen as a selling opportunity.

The prices of the plata (XAG / USD) Spot have been moving higher this Wednesday and, having found support earlier in the session at the $ 22.50 area, they are now trading around weekly / monthly highs just below $ 22.80. At current levels, spot prices are up more than 1.0% on the day. Dollar weakness is the main driver of strength observed in precious metals markets, making dollar-denominated precious metals slightly cheaper in the international market.

Also driving the silver wrecks are bond yields, with the 10-year downward around 2.5 basic points and falling back to 1.45%. This reduces the opportunity cost of holding unproduced precious metals, thus driving demand. Yields and the dollar are softer despite strong final US GDP data for the third quarter.

In reality, both yields and the dollar are consolidating within recent ranges with markets more widely negotiating with a lack of conviction as the end of the year holidays quickly approach and Christmas. That suggests that while silver is trading at monthly highs in the $ 22.75 area, it may struggle to make any more significant gains to the upside. A $ 23.00 test is certainly on the tablebut it has been a key balancing area in recent months and will therefore offer stiff resistance.

With the Fed poised to get more bullish in 2022, the margin for future rallies of silver (or gold) seems increasingly limited. With the precious metal bears prowling, Any rally to $ 23.00 or more can be seen as an opportunity to load low..