Silver Price Analysis: XAG/USD hits fresh more than two-month lows in $23.20s as buck advance continues

XAG/USD continues to trade with a downside bias and hit more than two-month lows in the $23.20s on Wednesday.
The buck continues to advance, weighing on the pair, amid risk-off flows, geopolitical jitters and Fed tightening bets.

Joel Frank Independent Analyst

Continued buck buoyancy against the backdrop of still very jittery global market risk appetite (US stocks have pared earlier gains to trade flat again and remain near weekly lows) has kept spot silver (XAG/USD) prices trading with a negative bias. XAG/USD continues to struggle on rebounds back towards its 200-Day Moving Average at $23.83 per troy ounce, with the precious metal printing a fresh more than two-month lows on Wednesday in the $23.20s.

Upcoming US GDP and Core PCE inflation data on Thursday and Friday will likely underpin expectations for the Fed to hike interest rates by 50 bps next week and at its coming meetings, which should, alongside concerning geopolitical developments in Europe, keep USD well supported in the coming days. If stocks resume their recent drop, which seems more likely than not at this stage, falling US (and global) yields on safe-haven bond demand might slow the pace of any XAG/USD decline, but bears will nonetheless be eyeing a test of $23.00.

In the slightly longer-term, bears will target test of annual lows in the $22.00 area, with recent failures to get back above the 200DMA and resistance at $24.00 a bearish sign for XAG/USD, so technicians say. But technicians have also warned that the recent build-up of USD long positions is becoming overstretched. A period of likely means a break below $23.00 isn’t on the cards before the end of this month.

XAG/Usd

Overview
Today last price	23.41
Today Daily Change	-0.10
Today Daily Change %	-0.43
Today daily open	23.51

Trends
Daily SMA20	24.79
Daily SMA50	24.88
Daily SMA100	23.89
Daily SMA200	23.83

Levels
Previous Daily High	23.93
Previous Daily Low	23.4
Previous Weekly High	26.22
Previous Weekly Low	24.05
Previous Monthly High	26.95
Previous Monthly Low	23.97
Daily Fibonacci 38.2%	23.6
Daily Fibonacci 61.8%	23.73
Daily Pivot Point S1	23.3
Daily Pivot Point S2	23.09
Daily Pivot Point S3	22.77
Daily Pivot Point R1	23.82
Daily Pivot Point R2	24.14
Daily Pivot Point R3	24.35

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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