- Silver is pulling back a bit after hitting one-month highs at $25.85 amid event risk ahead of USD profit-taking.
- XAG/USD has traded back to $25.55 and is on track to break a six-day winning streak.
Silver prices (XAG/USD) they are dovish and trading bearish at $25.55 per troy ounce. US bond yields and the US dollar continue to show some weakness, although profit-taking ahead of upcoming event risk and after the strong performance of the past few days prevents XAG/USD from closing the gap further to $26.00 .
Indeed, the precious metal closed in the green for the sixth consecutive session on Wednesday, during which time it has risen more than 6.5% from below $24.50 to above $25.00. Prices actually managed to hit one-month highs earlier in the day at $25.87, so traders shouldn’t be too surprised to see profit-taking/consolidation in play.
In terms of the short-term outlook for silver, as the recent pullback in US yields and the dollar continues, the chances of a break above $26.00 remain good. Silver, like other precious metals, will likely remain in demand for some time amid 1) elevated geopolitical risk premiums and 2) elevated demand for inflation protection as global inflation rates rise. That means that unless circumstances change drastically, XAG/USD should remain well supported above the $24.00 level, as has been the case in recent weeks.
Technical levels
Source: Fx Street
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