Russia is putting pressure on non-friendly countries to sell gas, since Putin plans to use the Russian ruble as a payment method.
XAG/USD Forecast: The daily chart shows a golden cross. This opens up the possibility of further gains.
Silver (XAG/USD), which traded at $25.09 in New York, recovered some of its brightness late in the session. This was due to XAG bulls staging a recovery and reclaiming the $25.00 mark. XAG/USD trades at $25.09 as of the writing.
Overnight, global equities were up, but since the mid-European session, and through the North American session, there has been a market downturn, which has led to them recording losses. The Russia-Ukraine dispute continues to dominate headlines. However, both sides' stances have not changed, so the situation is unchanged. In connection with this, US President Joe Biden will be traveling to the NATO offices in Brussels for the two-day reunion. As Russia's President Putin stated that they will use Russian roubles to sell gas to non-friendly nations, the US, UK and EU continue to impose sanctions on Russia. These remarks lifted oil prices, as WTI's recovered the $114.00 mark.
Precious metals are also rising as a result. The price of gold (XAU/USD), which is close to 1%, has risen to $1939.52 an ounce. Meanwhile, the sell-off was slowing in US Treasuries. As the yield on the 10-year US Treasury note fell from weekly highs, it lost five basis points and dropped at 2.321%. This tailwind favors XAG/USD.
Fed speakers are at the forefront
Loretta Mester (Cleveland Fed President) crossed the wires early in the New York session. She stated that the Fed would need 50 bps moves in this year's session, while she favors frontloading rate increases to better position herself for how the US economy develops in the second half 2022. Mester stated that she was not concerned that rate hikes would cause the US to enter recession.
Loretta Mester joined the Fed officials who have called for a 50-bps increase in Federal Funds rates. This includes Fed Chair Powell, Raphael Bostic and Chris Waller.
XAG/USD Forecast: Technical outlook
Silver (XAG/USD), bias is up, further supported by Monday's trading session. The 50-day moving mean (DMA), which is the DMA for the 200-days, was rolledover to form a golden cross. This signal, while lagging, could lead to further gains in XAG/USD.
XAG/USD would face its first resistance on November 16, 2021 at $26.00, with a daily high of $25.40. Brute of this would expose August 4, 2021's daily high at $26.00, followed closely by July 16, 2021 at $26.45.
