- Silver pulls back from weekly highs of around $24.00 as Russian President recognizes Donetsk and Luhansk as independent states.
- The white metal is falling despite a weaker US dollar across the board.
- Technical Outlook XAG/USD: Faces strong resistance around the $24.00-$24.25 area.
Silver (XAG/USD) retreats $24.00 despite growing concerns over geopolitical jitters in Eastern Europe. At the time of writing, XAG/USD is trading at $23.90.
Russia has signed a decree recognizing Donetsk and Lugansk as independent states
Concerns about the war between Russia and Ukraine are growing. For the past couple of hours, in the middle of a holiday in the United States, the conflict in Eastern Europe is getting all the attention. Leaders of two breakaway regions in eastern Ukraine urged Russian President Vladimir Putin, who at 1800 GMT signed a decree recognizing them as independent states.
That said, XAG/USD barely blinked at the stock reaction crossing the wires, stable around the $23.80 region.
During the overnight session for North American traders, the white metal failed to gain acceptance above the $24.00 mark, protected above by a 10-year-old descending trendline. ten months and the 200-day moving average (DMA) at $24.25. It should be noted that based on the price action, the $0.15 average reversal move could be attributed to profit taking as the non-performing metal, as seen on the 1-hour chart, has stalled at the 50-hour moving average. (HMA) around $23.86.
XAG/USD Price Prediction: Technical Outlook
XAG/USD has a neutral bias, represented by the daily chart. The short-term daily moving averages (DMAs) are below the spot price, indicating that XAG/USD is aiming higher. However, the presence of a ten-month-old trendline around the $24.00 mark, alongside the 200-DMA at $24.25, would be crucial resistance levels for XAG bulls to overcome. they want to aim higher.
At press time, the first resistance XAG/USD would be at $24.00. Once cleared, it would expose the 200-DMA at $24.25. Violation of the latter would pave the way for the daily high of November 16 of last year at $25.40.