Silver (XAG/USD) extends its overnight session losses, plunges 1.91% in the day, trading at $23.14 during the New York session at the time of writing. The discovery of a new COVID-19 variant called NU in South Africa dented the market sentiment. According to wires, the global scientific community is on alert. There is a chance that the new COVID-19 variant “NU” discovered in South Africa, could be more virulent than the Delta and vaccine-resistant. Scientists said that it has many mutations on the spike protein, and it is the “most evolved” variant yet discovered from the original virus. In the meantime, the US Dollar Index, which tracks the greenback’s performance against a basket of six rivals, falls 0.60%, sits at 96.15, underpinned by falling US T-bond yields, with the 10-year benchmark note, slides 14 basis points, down to 1.50%.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Therefore, COVID-19 developments would be the main drivers for silver and commodity traders. It is worth noticing that gold is trading with heavy losses, collapsed $15.00 in the day, standing at $1,785, at press time. Further, Western Texas Intermediate (WTI), US crude oil benchmark is down 11.63%, trading at $68.91.

Silver (XAG/USD) has a bearish bias, as depicted by the daily moving averages (DMA’s) residing above the spot price. That, alongside the Relative Strenght Index (RSI) at 36, indicates that the non-yielding metal still has enough room to print another leg-down.

In the outcome of extending the downtrend, the first demand zone would be the $23.00 figure. A breach of the latter would expose crucial support levels, like the October 12 swing low at $22.34, followed by the psychological $22.00. 

Silver Plummets Along Other Commodities

Nov 27 2021