Silver Price Analysis: XAG/USD floats around $23.60, as high US bond yields dented
|- Silver prices edge toward $23.60 following a dip below $24.00 last week, as US Treasury bond yields surge to 3.721%, curbing safe-haven appetite and softening the USD’s fall.
- XAG/USD holds its double-top chart pattern below the neckline. Although a failure to cross the 100-day EMA at $23.50 hints at the bullish sentiment, a bearish RSI suggests possible retesting.
- If XAG/USD breaks below the 100-day EMA, it eyes $23.00 and then the pivotal 200-day EMA at $22.82.
Silver price retraces toward the $23.60 area after falling below the $24.00 figure in the last week, courtesy of higher US Treasury bond yields, with the 10-year benchmark note rate at 3.721%, climbing more than four basis points. That dented the appetite for safe-haven assets, namely Gold and Silver prices, and cushioned the fall of the US Dollar. At the time of writing, the XAG/USD is trading at $23.62, almost flat as the Asian session begins.
XAG/USD Price Analysis: Technical outlook
The XAG/USD continues to validate a double-top chart pattern, with the XAG/USD’s spot price remaining below the double-top neckline. Failure to break below the 100-day Exponential Moving Average (EMA) at $23.50 keeps Silver buyers hopeful for higher prices. Nevertheless, the Relative Strength Index (RSI) indicator remains bearish, suggesting that the 100-day EMA could be retested soon.
If XAG/USD breaks below the latter, the next support would be the $23.00 figure before testing the “trendsetter” 200-day EMA at $22.82. Once broken, XAG/USD will turn bearish and be exposed to test lower prices. Firstly, the March 28 daily low at $22.83, followed by the March 21 swing low of $22.14.
On the other hand, for XAG/USD’s bullish continuation, Silver must reclaim the $24.00 mark, a troy ounce, followed by the 50-day EMA at $24.14. Once cleared, XAG/USD’s next resistance would be the 20-day EMA at $24.33, ahead of double-top neckline cracking.
XAG/USD Price Action – Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.