Silver Price Analysis: XAG/USD slumps into mid-$23.00s amid broad commodity sell-off


  • Silver has slumped towards $23.50 this Monday amid a broader sell-off in risk assets and commodities and as USD strengthens.
  • Now XAG/USD is below its 200DMA, bears are eyeing an eventual drop towards Q4 2021 lows in the $21.00s.

Spot silver (XAG/USD) prices came under heavy selling pressure on Monday in tandem with a broader downturn in the market’s appetite for risk and downside in other key commodities such as across energy and metals. Traders cited risk aversion relating to the increased risk of lockdowns in China with a Covid-19 outbreak now reported in Beijing, continued pessimism about the prospects for a peace deal in the Russo-Ukraine war and, perhaps most importantly, recent hawkish chatter from central bank policymakers.

Either way, XAG/USD was last trading down nearly 2.5% on the day just above the $23.50 per troy ounce mark, having broken below key resistance in the form of the 200-Day Moving Average at $23.85 and the March lows at $23.97. That means spot silver prices are trading at their lowest since mid-February, prior to the start of Russia’s invasion of Ukraine, with a modest downturn in global yields on the day as a result of risk aversion likely the only thing stopping silver crashing further towards $23.00.

But the bears will be confident in wake of the recent breakout below the 200DMA, with many calling for a drop towards support in the form of the Q4 2021 lows in the $21.00s in the coming weeks as the US dollar continues to rise on hawkish Fed sentiment and risk-off flows. The key risk events for traders to monitor this week include the first estimate of US Q1 GDP growth on Thursday followed by March Core PCE inflation on Friday, with the latter likely to endorse Fed plans/market expectations for a 50 bps rate hike at next week’s meeting.

XAG/Usd

Overview
Today last price 23.6
Today Daily Change -0.55
Today Daily Change % -2.28
Today daily open 24.15
 
Trends
Daily SMA20 24.95
Daily SMA50 24.88
Daily SMA100 23.87
Daily SMA200 23.85
 
Levels
Previous Daily High 24.67
Previous Daily Low 24.05
Previous Weekly High 26.22
Previous Weekly Low 24.05
Previous Monthly High 26.95
Previous Monthly Low 23.97
Daily Fibonacci 38.2% 24.29
Daily Fibonacci 61.8% 24.43
Daily Pivot Point S1 23.91
Daily Pivot Point S2 23.67
Daily Pivot Point S3 23.29
Daily Pivot Point R1 24.53
Daily Pivot Point R2 24.91
Daily Pivot Point R3 25.15

 

 

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