Silver Price Analysis: XAG/USD dip amid rising US yields, the 200-DMA eyed
- Silver price loses some territory for the second time in the week, down more than 0.50%.
- High US Treasury bond yields and XAG/USD’s failure to climb above $24.00 would pave the way for a pullback.
- If XAG/USD retraces past the 200-DMA, sellers target $22.70.
Silver price reversed its course on Wednesday, registering decent losses of more than 0.40% as US Treasury bond yields advance due to American households’ upward reviewed inflation expectations for one year. Consequently, the US 10-year Treasury bond yield rose, a headwind for the grey metal, which trades at $23.57 after reaching a high of $23.94.
From a daily chart standpoint, the XAG/USD is neutral to upward biased, though, for the last three days, buyers had failed to crack the two-month high reached on November 17 at $24.14. Once that level is surrendered, the next stop would be the August 30 high at $25.00, followed by the July 19 at $25.23.
On the other hand, XAG/USD’s failure at $24.00 for the fifth time could open the door for further losses. The first support would be the 200-day moving average (DMA) at $23.30, followed by the 20-DMA at $23.03. A breach of the latter, Silver would continue diving toward the 50-DMA at $22.71.
XAG/USD Price Analysis – Daily Chart
XAG/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
