Silver Price Analysis: XAG/USD fall by more than 4%, breaking key support
- XAG/USD suffers the worst daily decline in months.
- Price hits the lowest level in five weeks, under pressure after losing key support levels.
- Gold remains steady, US stocks rise.
Silver price is falling sharply on Monday, even as the US Dollar holds relatively steady and despite rising equity prices. XAG/USD recently hit a fresh one-month low at $22.73 before rebounding toward $23.00.
During the Asian session, silver hit a five-day high at $24.15 but It failed to hold above $24.00. After moving sideways during most of the European session, XAG/USD broke the $23.60 support area, and tumbled, also losing the $23.10/20 zone.
At some point of the day, silver was losing more than 5% before trimming some losses. The sharp decline takes place even as gold trades practically flat for the day and even as Wall Street rises. The Dow Jones is up by 0.80% and the S&P 500 gains 1.05%.
The technical outlook has deteriorated significantly for XAG/USD. The 20-day Simple Moving Average, today at $23.70 is starting to turn south. The next strong support emerges at $22.50.
A recovery back above $23.20 would alleviate the bearish pressure. A daily close well above $24.10 should open the doors to more gains over the medium term.
XAG/USD 4-hour chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
