One-month risk reversal (RR) of silver (XAG/USD) extends Friday’s rebound, suggesting a bullish bias of the options market participants. That said, the spread between call and put prices rises the most since December 01, +0.250 at the latest, during early Monday morning in Europe.

It’s worth noting, however, that the XAG/USD prices differ from the RR signals as the commodity keeps Friday’s pullback moves from early December’s tops near $22.35 by the press time.

Above all, risk-off mood weigh on the quote but softer US Treasury yields and the US dollar challenge momentum traders amid a light calendar.

The sour sentiment takes clues from the escalating concerns over the covid variant linked to South Africa, namely Omicron, as well as fresh fears of a Fed rate hike in early 2022. Adding to the bearish catalysts is the indecision over President Joe Biden’s Build Back Better (BBB) stimulus.

A surprise rate cut from the People’s Bank of China (PBOC) and chatters over Kaisa, the troubled firm based in Beijing, fail to recall the silver buyers.

Read: Gold Price Forecast: XAU/EUR pierces €1,600 to refresh monthly top on softer yields