Silver Price Analysis: XAG/USD plummets to a two-month low, below the 200-day EMA
|- XAG/USD sinks below key $22.96, the 200-day EMA level.
- Bearish RSI and RoC indicate a strong sell-off, warranting further XAG/USD downside.
- XAG/USD upside resistance was found at a $23.00 handle, followed by a challenge of the 100-day EMA.
Silver price pierces below the 200-day Exponential Moving Average (EMA) of $22.96 as sellers pile in, dragging prices towards a new two-month low of $22.50, as high US Treasury bond yields pressure the precious metals segment. At the time of writing, XAG/USD trades at $22.75, while Gold (XAU/USD) spot exchanges hands at $1931.02, down 1.64% and 0.23%, respectively.
Risk-off sentiment is weighing on the precious metals segment. Investors remain uncertain as the Fed Chair Jerome Powell commences his two-day testimony at the US Congress, which you can follow here. The US 10-year Treasury note yields 3.775% and gains 4.6 bps, while US real yields, directly influencing XAG/USD’s prices, climb five bps to 1.555%.
XAG/USD Price Analysis: Technical outlook
The XAG/USD remains neutral to downward biased, though it could shift to the downside if XAG/USD prints a daily close below the May 25 swing low of $22.68. That would mean the Silver price breaking the 200-day Exponential Moving Average (EMA) threshold and, from a technical perspective, turning XAG/USD bearish.
Further cementing XAG/USD bearish case is the Relative Strength Index (RSI) indicator at negative territory, while the three-day Rate of Change (RoC) continues to plunge as sellers gain momentum.
That said, in that outcome, XAG/USD could dive towards the March 21 daily low at $22.14 before challenging the $22.00 figure. A breach of the latter will expose the March 16 low at $21.47, followed by the $21.00 mark.
Conversely, if XAG/USD reclaims the 200-day EMA, that could expose the $23.00 handle on the upside, followed by the 100-day EMA at $23.52.
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.