Silver Price Analysis: XAG/USD hits two-week low, as bearish-engulfing pattern emerges
- Silver drops over 1.40% hit by rising US Treasury yields and Powell's hawkish stance.
- XAG/USD dips below December 13 low, eyeing $22.00 for further decline risk.
- Failure to retake 100-DMA at $23.13 signals potential extended losses, next support at November 13 low of $21.88.
- A bounce above $22.50 may revive buying towards $23.00 and key daily moving averages.
Silver price dives to a new two-week low of $22.25 and tumbles more than 1.40% in the day as US Treasury bond yields climb. Federal Reserve Chair Jerome Powell's hawkish commentary, disregarding a rate cut in March and signaling three interest rate cuts, were enough to keep the Greenback bid. Therefore, precious metals fell and are extending their losses. The XAG/USD trades at $22.36 after hitting a high of $22.73.
XAG/USD pushed lower below the December 13, 2023 swing low of $22.51, aiming toward the $22.30 area. Even though the grey metal bounced off the 78.6% Fibonacci retracement, failing to reclaim the 100-day moving average (DMA) at $23.13 opened the door for further losses. If Silver drops below $22.00 per troy ounce, look for a challenge of the November 13 low of $21.88.
On the opposite side, if buyers regain $22.50 and the $23.00 figure, they could challenge the 100-DMA, followed by the 200-DMA at $23.41.
XAG/USD Price Action – 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.
