Silver Price Analysis: XAG/USD tumbles as US inflation boosts Treasury yields

Silver's price dips 1.48% to $24.10 following a stronger-than-expected US inflation report.
XAG/USD may fall further if it breaks $24.09 support.
Recovery needs hold above $24.09; potential bounce between $24.00-$24.70.

Christian Borjon Valencia FXStreet

Silver price plunged late in the North American session following a hot inflation report in the United States that sponsored a rise in US Treasury yields, a headwind for the non-yielding metal. Therefore, the XAG/USD dropped from around year-to-date (YTD) highs of $24.68 and trades at $24.10, down 1.48%.

XAG/USD Price Analysis: Technical outlook

On Tuesday, Silver’s pullback dragged prices toward the January 2 high and turned support at $24.09. If sellers retain control in the near term and push prices below the latter, that would expose the $24.00 figure. Once cleared, XAG/USD would extend its losses toward the January 12 high at $23.52.

On the other hand, if buyers keep Silver’s spot prices above $24.09, look for range-bound trading within the $24.00-$24.70 area. The next resistance would be the $25.00 figure, followed by last year’s high at $25.91.

XAG/USD Price Action – Daily Charts

XAG/USD

Overview
Today last price	24.09
Today Daily Change	-0.38
Today Daily Change %	-1.55
Today daily open	24.47

Trends
Daily SMA20	23.17
Daily SMA50	22.96
Daily SMA100	23.3
Daily SMA200	23.29

Levels
Previous Daily High	24.52
Previous Daily Low	24.24
Previous Weekly High	24.64
Previous Weekly Low	23.02
Previous Monthly High	23.5
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	24.42
Daily Fibonacci 61.8%	24.35
Daily Pivot Point S1	24.3
Daily Pivot Point S2	24.13
Daily Pivot Point S3	24.02
Daily Pivot Point R1	24.58
Daily Pivot Point R2	24.7
Daily Pivot Point R3	24.87

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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