Silver Price Analysis: XAG/USD rebounds after falling toward $22.00
- Silver tumbles to $22.07, and it was able to hold above the critical $22.00 area.
- It rebounded sharply, alleviating the negative bias.
Silver trimmed losses during the last hours and after hitting a weekly low at $22.07, near the 2021 low of $22.01. The $22.00 zone continues to be a key and intact barrier that if broken, could lead to further losses.
The rebound in XAG/USD pushed the price to levels near $22.50. The metal is now down just 0.35% for the day and flat for the week. A recovery above $22.60 would further alleviate the bearish pressure.
For silver to suggest a potential short-term bottom, it needs to rise above $23.00. Above the next level to consider is the 20-day moving average around $23.60.
The key driver in the recent spike lower was a stronger US dollar across the board amid higher US yields and some caution across financial markets. Federal Reserve official on Friday opened the doors further to a tapering in November, reaffirming the signs that emerged from this week’s FOMC meeting.
XAG/USD daily chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
