The spot price of Silver, XAG/USD, experienced a significant decline, falling to around $22.00 at the close of the week, resulting in a 3% weekly loss. The primary drivers of this downturn were the strengthening US Dollar and the rebound in yields throughout the week.
Following the initial weakening of the Greenback when the Federal Reserve (Fed) maintained rates last week, signaling a potential end to its cycle, and a lackluster October jobs report, the USD staged a recovery in the later sessions. This resurgence was prompted by the intervention of Fed hawks and Chair Powell's assertion that the central bank's work was not yet complete, contributing to a surge in US bond yields.
From a technical perspective, XAG/USD maintains a bearish outlook in the short term. Both the Daily and Hourly charts indicate a potential opportunity for a short continuation, with the next target set at 21.600 in extension. Traders are closely monitoring these technical indicators amidst the evolving dynamics of the precious metals market.
Our preference
Short positions below 22.40 with targets at 21.80 & 21.60 in extension.
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