Silver retreats from weekly tops around $24.00 as the Russian President recognize Donetsk and Luhansk as independent states.XAG/USD Technical Outlook: Faces strong resistance around $24.00-$24.25 area.
retreats from $24.00 despite growing concerns in geopolitical jitters in Eastern Europe. At the time of writing, XAG/USD is trading at $23.90.War concerns between Russia and Ukraine increase. In the last couple of hours, amid a US bank holiday, the conflict in Eastern Europe grabs all the attention. Leaders from two Eastern Ukraine separatist regions urged Russian President Vladimir Putin, who, at 18:00 GMT, signed a decree recognizing them as independent states.
That said, the XAG/USD barely blinked at the reaction of the headline crossing the wires, steady 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 ten-month-old downslope trendline and the 200-day moving average at $24.25. It is worth noting that based on the price action, the $0,15 mean reversion move could be attributed to profit-taking, as the non-yielding metal, as shown by the 1-hour chart, stalled at the 50-hour moving average around $23.86.
At press time, XAG/USD first resistance would be $24.00. Once cleared, it would expose the 200-DMA at $24.25. Breach of the latter would pave the way towards last year’s November 16 daily high at $25.40.