Silver prices (XAG/USD) traded higher at around $61.10 in Asian markets on Monday, maintaining gains from Friday amid news of a Russia-Ukraine energy ceasefire announced by US President Donald Trump [1]. Trump stated on Truth Social that both Russia and Ukraine agreed to a temporary halt in attacks on energy facilities, with the ceasefire described as 'effective immediately' [1]. This development comes after Ukraine had been targeting Moscow’s energy infrastructure, and Trump also claimed to have struck a deal with Russian President Vladimir Putin for staged diesel supplies from Russia [1].
The announcement led to a 2% decline in WTI oil prices to near $89.00 and pressured US 10-year Treasury yields, which fell to around 5.24% from a two-decade high of 5.36% on Friday [1]. Lower bond yields typically benefit non-yielding assets like silver, providing some relief to global markets already strained by tight energy supplies due to Middle East tensions [1].
From a technical perspective, XAG/USD trades at $61.02, maintaining a bearish near-term bias as it remains below the 20-day Exponential Moving Average (EMA) at $62.07 [1]. The Relative Strength Index (RSI) stands at 44, indicating neutral-to-soft momentum and suggesting continued downside pressure [1]. Immediate resistance is at the 20-day EMA, and a daily close above this level would be required to shift the current bearish outlook [1].
Investors are also awaiting the release of the US Consumer Price Index (CPI) data for September, scheduled for Wednesday, which could further influence market direction [1].
CONCLUSION
Silver prices are holding steady near $61 following the announcement of a Russia-Ukraine energy ceasefire, which has eased some market tensions and pressured oil prices and US bond yields. However, technical indicators suggest a bearish bias persists unless XAG/USD can reclaim the 20-day EMA. Market participants are closely watching upcoming US CPI data for further cues.