Silver Price Analysis: XAG/USD collapses below $30.00 as double top emerges

Silver breaches key support levels amid ‘double top’ chart pattern confirmation.
XAG/USD fall amid lower US T-bond yields as traders book profits.
XAG/USD double top pattern objective would be $27.80.

Christian Borjon Valencia FXStreet

Silver prices sank sharply on Tuesday amid falling US Treasury bond yields and a firm US dollar. The grey metal dropped more than 4% at the time of writing and trades at $29.48 after the XAG/USD hit a daily high of $30.88.

XAG/USD Price Analysis: Technical outlook

The XAG/USD fell below the latest cycle high seen on April 12 at $29.79, opening the door for deeper losses. Traders had witnessed the confirmation of a ‘double top’ chart pattern, opening the door to test key support levels on the way south.

The first one would be the psychological $29.00. A breach of the latter will expose previous key resistance levels that turned support, like the May 18, 2021, high of $28.74, followed by the June 10, 2021, high of $28.34. Up next would be the ‘double top’ objective at $27.80.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	29.5
Today Daily Change	-1.23
Today Daily Change %	-4.00
Today daily open	30.73

Trends
Daily SMA20	30.09
Daily SMA50	28.26
Daily SMA100	25.77
Daily SMA200	24.52

Levels
Previous Daily High	30.81
Previous Daily Low	29.78
Previous Weekly High	32.3
Previous Weekly Low	30.19
Previous Monthly High	32.51
Previous Monthly Low	26.02
Daily Fibonacci 38.2%	30.42
Daily Fibonacci 61.8%	30.17
Daily Pivot Point S1	30.07
Daily Pivot Point S2	29.41
Daily Pivot Point S3	29.04
Daily Pivot Point R1	31.1
Daily Pivot Point R2	31.47
Daily Pivot Point R3	32.13

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains in the red, still below $4,400

Gold maintains an erratic trade so far this week, now slipping back below the key $4,400 mark per troy ounce following the stronger US Dollar and a strong rebound in US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

XRP slides amid a fragile crypto market structure

Ripple (XRP) falls for the second straight day, trading at $1.37 on Thursday. The broader cryptocurrency market remains fragile as investors weigh the impact of geopolitical tensions in the Middle East, which triggered persistent increases in Crude Oil prices while restricting shipping through the Straight of Hormuz and the Red Sea.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.