Silver Price Analysis: XAG/USD resiliently rebounds, claims $23.00 amidst high US bond yields


  • Silver price returns from two-month lows, crosses the 200-day EMA and $23 threshold and ends the week with a 2.89% loss.
  • Despite US data supporting another Fed rate hike and subsequent rise in Treasury bond yields, silver price sustains an upward trajectory, targeting the 100-day EMA.
  • With the Relative Strength Index indicating potential silver weakness, downside risk remains.

Silver price bounces off two-month-lows hit at $22.68, rallies sharply, and claims the 200-day Exponential Moving Average (EMA) at $22.82 and the $23.00 psychological figure on Friday’s mid-North American session. Although the white metal is gaining more than 1.90%, it is set to finish the week with losses of 2.89%. At the time of writing, XAG/USD is trading at $23.15.

Silver Price Analysis: XAG/USD technical outlook

Even though economic data from the United States (US) justifies another rate hike by the US Federal Reserve (Fed). Therefore, US Treasury bond yields are rising, underpinning the greenback. However, the XAG/USD ignored most factors that could drag the price low and rip higher, eyeing the 100-day Exponential Moving Average (EMA) at $23.47.

Nevertheless, the Relative Strength Index (RSI) is in bearish territory, warranting further Silver weakness, while the 3-day Rate of Change (RoC) has yet to reach neutral levels. Therefore, additional downside could be expected.

However, if XAG/USD clears the 100-day EMA, it would face sold resistance at the confluence of the 20 and 50-day EMAs at around $23.97-24.00. Once broken, the next supply zone would be the $25.00 mark.

On the flip side, and the path of least resistance in the near term, the XAG/USD first support would be $23.00, followed by $22.68, the current week’s low. A beach of the latter will expose the March 21 swing low of $22.14.

Silver Price Action – Daily chart

XAG/USD Daily chart

XAG/USD

Overview
Today last price 23.25
Today Daily Change 0.51
Today Daily Change % 2.24
Today daily open 22.74
 
Trends
Daily SMA20 24.47
Daily SMA50 24.34
Daily SMA100 23.36
Daily SMA200 22
 
Levels
Previous Daily High 23.15
Previous Daily Low 22.7
Previous Weekly High 24.21
Previous Weekly Low 23.33
Previous Monthly High 26.09
Previous Monthly Low 23.57
Daily Fibonacci 38.2% 22.87
Daily Fibonacci 61.8% 22.98
Daily Pivot Point S1 22.58
Daily Pivot Point S2 22.42
Daily Pivot Point S3 22.13
Daily Pivot Point R1 23.03
Daily Pivot Point R2 23.32
Daily Pivot Point R3 23.48

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds recovery gains above 1.0650, as risk appetite returns

EUR/USD holds recovery gains above 1.0650, as risk appetite returns

EUR/USD is clinging to recovery gains above 1.0650 in the Asian session on Monday. The pair regains lost footing, as markets remain upbeat and weigh negatively on the safe-haven US Dollar. Markets reposition ahead of key Eurozone and US data due later this week. 

EUR/USD News

GBP/USD rebounds from YTD trough, steadily climbs back closer to 1.2400 mark

GBP/USD rebounds from YTD trough, steadily climbs back closer to 1.2400 mark

GBP/USD attracts some dip-buyers on Monday amid a softer USD, though lacks follow-through. Easing geopolitical tensions boosts investors’ confidence and undermines the safe-haven buck. Reduced Fed rate cut bets should help limit the USD losses and cap any further gains for the pair.

GBP/USD News

Gold price trades with modest losses below $2,400 mark, downside seems limited

Gold price trades with modest losses below $2,400 mark, downside seems limited

Gold price drifts lower on Monday amid hopes that the Iran-Israel conflict will not escalate further. Reduced Fed rate cut bets are keeping the US bond yields elevated and also exert pressure on the metal. The fundamental backdrop warrants caution before positioning for any further depreciating move.

Gold News

Meme coin madness returns after Bitcoin halving concludes

Meme coin madness returns after Bitcoin halving concludes

As Bitcoiners and cryptocurrency enthusiasts continue to celebrate the fourth Bitcoin halving, capital overflows are channeling into meme coins, causing key sector players to rally.

Read more

Dollar Index in view ahead of data

Dollar Index in view ahead of data

Ahead of this week’s US GDP first estimate print and the PCE Price Index numbers, the US Dollar Index will likely be a watched market. Buyers remain firmly at the wheel. YTD, we are nearly +5.0%, with April on track to close higher for a fourth consecutive month, up +1.5% MTD. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures