Silver Price Forecast: XAG/USD struggles at $26.00, retraces to $25.60s on US dollar strength

• Silver begins the week on the wrong foot, down some 0.37%.
• Geopolitical concerns between Russia-Ukraine, weigh on market mood.
• XAG/USD Technical Outlook: Upward biased though failure to record a daily close above $26.00 would keep silver in consolidation.

Silver (XAG/USD) reached a YTD high around $26.14 earlier in the day but so far retreated and sits around $25.60s, amid a risk-aversion trading environment, spurred by no advance in ceasefire or peace talks between Russia and Ukraine, as hostilities remain. At $25.59, XAG/USD reflects the US dollar strength across the board.

Russia-Ukraine update

In the last hour, the third round of talks between Russia and Ukraine made limited progress on negotiating a ceasefire, as reported by a Ukrainian negotiator, and accord to meet again. In the meantime, the US is set to impose a ban on oil imports into the US. Meanwhile, European countries on this occasion would not take part in the sanctions due to their dependence on Russian crude.

Besides, global equity markets extend losses at the beginning of the week, portraying investors’ risk aversion. In the bond market, US Treasury yields have risen as of late, with the 10-year benchmark note up two basis points, sitting at 1.741%, weighing on the non-yielding metal.

XAG/USD Price Forecast: Technical outlook

XAG/USD is upward biased, but failure to reclaim the $26.00 level for the second time In the last eight months (August 4, 2021 high at $26.00) would expose November 16, 2021, resistance/support at $25.40. Also worth noting is that Monday’s price action threatens to form a spinning top, meaning that consolidation could take place around the $25.00-$26.00 areas as XAG/USD traders wait for a fresh catalyst.

Resistance – Support levels

Upwards, XAG/USD’s first resistance would be the $26.00 mark. Breach of the latter would expose $26.14, followed by July 16, 2021, high at $26.45, and then July 5, 2021, at $26.77. On the flip side, XAG/USD’s first support would be November 16, 2021, resistance-turned-support at $25.40. Once cleared, the next floor level would be $25.00, followed by January 20 resistance-turned-support at $24.70