Silver Price Analysis: XAG/USD slumps amid hawkish Fed comments, high US yields
|- Silver's price drops to $29.49, posting minimal losses of 0.38%.
- First support level at the 50-day moving average near $29.01.
- If Silver buyers clear $30.00, a re-test of the YTD high of $32.51 is possible.
Silver's price edged lower and posted minimal losses of 0.38% on Monday. Elevated US Treasury bond yields amid Fed hawkish commentary undermined the grey metal. Therefore, the XAG/USD trades at $29.49 at the time of writing.
XAG/USD Price Analysis: Technical outlook
The grey metal is neutral to downward biased after hitting an eleven-year high of 32.51. Since then, the pair retreated towards an area near the 50-day moving average (DMA) at around $29.01, which is the first support level.
Momentum turned bearish, with the Relative Strength Index (RSI) standing below the 50-midline.
Therefore, the first support level for XAG/USD would be the 50-DMA. If the Silver price dives below that level, the next support level will be the 100-DMA at $26.40, ahead of the May 2 low of $26.02.
On the other hand, if Silver buyers conquer $29.00, they must clear the $30.00 handle if they want to re-test the year-to-date (YTD) high of $32.51.
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.