FX
  • Metals on fire at monthly highs, even as yields hold steady.
  • XAG/USD heads for the third highest daily close since September.

After a correction, metals resumed the upside and jumped to monthly highs. Silver rose to $28.15, reaching the highest level since February. It is rising 2.60% on Monday. Gold is also sharply higher, above $1860.

A consolidation of XAG/USD above $28.00 would point to further gains. The next strong resistance is located around $28.25/30. The bullish bias is likely to remain intact while above $26.60. A break under the mentioned level should clear the way to more losses. On the upside, a daily close clearly above $28.30 would point to an extension to the upside toward the $29.00 area.

On Monday, the rally in metals is taking place even as US yields remain steady and as equity prices in Wall Street dropped modestly. A weaker US dollar contributes to boost metals, as the DXY approaches 90.00.

XAG/USD daily chart

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