Silver Price Forecast: XAG/USD marches firmly to breach the 200-DMA at $24.26

• Silver record gains during the week, up some 1.30%, despite rising US Treasury yields.
• Market players ignored positive US macroeconomic data in favor of geopolitical headlines.
• XAG/USD Technical Outlook: Neutral-upward, and if it achieves a daily close above $24.00, a move towards the 200-DMA is on the cards.

Silver rally extends to four consecutive trading sessions notwithstanding rising tensions in the Russia/Ukraine conflict. At press time, XAG/USD is trading at $24.20.

In the meantime, the US 10-year Treasury Note yield rises almost two basis points sits at 1.948%, failing to weigh on the white metal, benefited by heightened tensions in Ukraine.

Appetite for safe-haven assets has increased in the last couple of weeks due to uncertainty in Eastern Ukraine. In the case of silver, the non-yielding metal rose to a four-week high but soon will face strong resistance at the 200-day moving average (DMA) at $24.26.

US Markit PMIs came better than expected, while Consumer Confidence falls

During the North American session, some US macroeconomic news crossed the wires. The US Markit Manufacturing and Services PMI for February rose more than expected. The former increased to 57.5 vs. 56.0 estimations, while the latter rose 56.7 vs. 53.0 foreseen. The Markit Composite Index, a measure of both readings, carried on both sectors, expanding to 56.0 from 51.1 January’s reading.

Late, the Conference Board released the Consumer Confidence for the same period as the abovementioned economic indicators. Consumer confidence rose by five-tenths from 110.0 to 110.5, as foreseen but trailed January’s 113.8.

Market players did not react to the abovementioned data, as their primary focus is on geopolitical tussles.

XAG/USD Price Forecast: Technical outlook

The silver daily chart depicts neutral-upward bias after the broken ten-month-old downslope trendline, exposing the 200-DMA at $24.26. Nevertheless, a daily close over the abovementioned trendline would be required so that XAG bulls could use the $24.00-20 area as consolidation as they prepare to break the 200-DMA.

If the mentioned scenario plays out, XAG/USD’s first resistance would be $24.26. Breach of the latter would expose January 20 daily high at $24.70. Once cleared, the $25.00 mark would be the next roof. A decisive break would send XAG/USD rallying towards November’s 2021 highs at $25.40.