Silver Price Analysis: XAG/USD tumbles over 3%, pressured by strong US Dollar

Silver's sharp decline to $22.89 was driven by US bond yield fluctuations and USD strength before the release of key Fed minutes.
A potential break below the three-month support trendline could lead XAG/USD towards $22.00 and previous lows.
Recovery above the 100-day moving average might fuel a rally, targeting key resistances at $23.64 and $24.00.

Christian Borjon Valencia FXStreet

Silver plunged more than 3% on Wednesday, as US Treasury bond yields pare their earlier gains, while the Greenback (USD) exploits to the upside ahead of the release of the Federal Reserve’s December meeting minutes. At the time of writing, the XAG/USD is trading at $22.89 after hitting a daily high of $23.72.

The daily chart portrays the grey metal as neutral-biased, but if it prints a daily close below the three-month-old upslope support trendline drawn from the lows of October 2023, that could pave the way for further losses. In that outcome, the XAG/USD could dive below the $22.00 figure and test the November 13 low of $21.88, followed by the October monthly low of $20.69.

On the other hand, if Silver trims some of today’s losses and buyers reclaim the 100-day moving average (DMA) at around $23.29, that would keep buyers hopeful of higher prices, with the first resistance level emerging at the confluence of the 50 and 200-DMAs, each at $23.64 and $23.66, respectively. Once those levels are surpassed, the next resistance would be the $24.00 mark.

XAG/USD Price Action – Daily Chart

XAG/USD Technical Levels

XAG/USD

Overview
Today last price	22.9
Today Daily Change	-0.76
Today Daily Change %	-3.21
Today daily open	23.66

Trends
Daily SMA20	23.83
Daily SMA50	23.65
Daily SMA100	23.3
Daily SMA200	23.67

Levels
Previous Daily High	24.09
Previous Daily Low	23.64
Previous Weekly High	24.49
Previous Weekly Low	23.54
Previous Monthly High	25.92
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	23.82
Daily Fibonacci 61.8%	23.92
Daily Pivot Point S1	23.5
Daily Pivot Point S2	23.35
Daily Pivot Point S3	23.05
Daily Pivot Point R1	23.95
Daily Pivot Point R2	24.25
Daily Pivot Point R3	24.4

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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