fxs_header_sponsor_anchor

News

Silver Price Analysis: XAG/USD resiliently rebounds, claims $23.00 amidst high US bond yields

  • Silver price returns from two-month lows, crosses the 200-day EMA and $23 threshold and ends the week with a 2.89% loss.
  • Despite US data supporting another Fed rate hike and subsequent rise in Treasury bond yields, silver price sustains an upward trajectory, targeting the 100-day EMA.
  • With the Relative Strength Index indicating potential silver weakness, downside risk remains.

Silver price bounces off two-month-lows hit at $22.68, rallies sharply, and claims the 200-day Exponential Moving Average (EMA) at $22.82 and the $23.00 psychological figure on Friday’s mid-North American session. Although the white metal is gaining more than 1.90%, it is set to finish the week with losses of 2.89%. At the time of writing, XAG/USD is trading at $23.15.

Silver Price Analysis: XAG/USD technical outlook

Even though economic data from the United States (US) justifies another rate hike by the US Federal Reserve (Fed). Therefore, US Treasury bond yields are rising, underpinning the greenback. However, the XAG/USD ignored most factors that could drag the price low and rip higher, eyeing the 100-day Exponential Moving Average (EMA) at $23.47.

Nevertheless, the Relative Strength Index (RSI) is in bearish territory, warranting further Silver weakness, while the 3-day Rate of Change (RoC) has yet to reach neutral levels. Therefore, additional downside could be expected.

However, if XAG/USD clears the 100-day EMA, it would face sold resistance at the confluence of the 20 and 50-day EMAs at around $23.97-24.00. Once broken, the next supply zone would be the $25.00 mark.

On the flip side, and the path of least resistance in the near term, the XAG/USD first support would be $23.00, followed by $22.68, the current week’s low. A beach of the latter will expose the March 21 swing low of $22.14.

Silver 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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.