Silver Price Forecast: XAG/USD slumps below $22.00, bears target $20.00
|- XAG/USD fall on broad US dollar strength across the board.
- Higher US bond yields weigh on the XAG/USD.
- From the technical perspective, a daily break below $21.65 could pressure XAG/USD towards $20.00 and beyond.
Silver (XAG/USD) is still under pressure, slumps for the second day out of three, trading at $21.54, down around 4% at the time of writing. XAG/USD slide is attributed to increasing US dollar demand, with the US Dollar Index rising 0.64%, sitting at 94.34
Market sentiment is upbeat. Major US stocks indices finished in the green, with the S&P 500 and the Dow Jones posting gains of 0.16% and 0.23%, respectively, except for the Nasdaq Composite, which dropped 0.24%, during the New York session.
Regarding US bond yields, which influence precious metals prices, the 10-year benchmark note rate seesawed around 1.524%, unchanged.
XAG/USD Price Forecast: Technical outlook
Daily chart.
XAG/USD is testing the low of September 24, 2020, at $21.65. A sustained break of the latter would exert substantial downward pressure on silver. The following support level would be July 15, 2020, high at $19.48. In case of a break of that level, the psychological $19.00 would be the seller's next target.
On the flip side, failure at $21.65 can pave the way for further gains. The first supply zone for XAG/USD would be the psychological $22.00 level, immediately followed by the August 9 low at $22.17. A decisive break of the level mentioned above could push the price towards $23.00.
The Relative Strength Index is at 28, in oversold levels, which could signal XAG/USD consolidation ahead.
ADDITIONAL LEVELS TO WATCH
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