Silver Price Analysis: XAG/USD tumbles to $26.20 on Yellen’s comments

US Dollar rose quickly across the board after US Treasury Secretary Yellen spoke about interest rates.
Gold and silver printed fresh daily lows, moving away from key levels.

Matías Salord FXStreet

Silver lost 2.5% in a few minutes during the American session and bottomed at $26.21 following comments from US Treasury Secretary Janet Yellen. XAG/USD then bounced to the upside to the 26.50 area. It was still under pressure, as market participants digest the recent developments.

Yellen mentioned that interest rates may have to rise to stop the economy from overheating, triggering a rebound in US yields and weakening metals. The 10-year yield rose from multi-day lows at 1.55% to 1.58%. At the same time, the DXY printed a fresh daily high at 91.37.

Earlier on Tuesday, XAG/USD peaked at 27.11, but it failed to hold above 27.00 and quickly pulled back below. The bullish tone alleviated after the rejection from above 27.00, which was followed by the sharp correction.

At the same time, gold also tumbled. It peaked at $1799/oz and recently plummeted to $1773, turning negative for the day and far from the $1800 area.

Technical levels

XAG/USD

Overview
Today last price	26.41
Today Daily Change	-0.47
Today Daily Change %	-1.75
Today daily open	26.88

Trends
Daily SMA20	25.82
Daily SMA50	25.86
Daily SMA100	26.04
Daily SMA200	25.57

Levels
Previous Daily High	27
Previous Daily Low	25.81
Previous Weekly High	26.48
Previous Weekly Low	25.71
Previous Monthly High	26.64
Previous Monthly Low	24.25
Daily Fibonacci 38.2%	26.54
Daily Fibonacci 61.8%	26.26
Daily Pivot Point S1	26.13
Daily Pivot Point S2	25.37
Daily Pivot Point S3	24.94
Daily Pivot Point R1	27.32
Daily Pivot Point R2	27.75
Daily Pivot Point R3	28.51

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.

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