Silver price (XAG/USD) bounces off the daily lows surrounding $21.00 to $21.25 as European traders brace for the key week on Monday. In doing so, the bright metal justifies the mixed signals from the options market, as well as the risk-off mood.

That said, the one-month daily risk reversal (RR), a gauge of call options to put options, dropped in the last fortnight to the latest weekly print of -0.040. It’s worth noting, however, that the receding bearish bias appeared to have challenged the XAG/USD buyers.

Even so, the broad risk-aversion wave, due to the Covid fears, seems to keep the pair buyers hopeful. That said, the record-high daily virus infections from China and the protests to ease the Zero-Covid policy seemed to challenge the market sentiment of late.

On the contrary, alleged defense from Chinese authorities to safeguard equities appeared to trigger the XAG/USD’s latest rebound.

Above all, silver remains on the bear’s radar as the options market flashes downbeat signals, even if being softer of late.

Also read: EUR/USD Analysis: Bulls turn cautious near 200-DMA amid China’s COVID-19 jitters