Silver Price Forecast: XAG/USD slumps below $22.00, bears target $20.00
- XAG/USD fall on broad US dollar strength across the board.
- Higher US bond yields weigh on the XAG/USD.
- From the technical perspective, a daily break below $21.65 could pressure XAG/USD towards $20.00 and beyond.
Silver (XAG/USD) is still under pressure, slumps for the second day out of three, trading at $21.54, down around 4% at the time of writing. XAG/USD slide is attributed to increasing US dollar demand, with the US Dollar Index rising 0.64%, sitting at 94.34
Market sentiment is upbeat. Major US stocks indices finished in the green, with the S&P 500 and the Dow Jones posting gains of 0.16% and 0.23%, respectively, except for the Nasdaq Composite, which dropped 0.24%, during the New York session.
Regarding US bond yields, which influence precious metals prices, the 10-year benchmark note rate seesawed around 1.524%, unchanged.
XAG/USD Price Forecast: Technical outlook
Daily chart.
XAG/USD is testing the low of September 24, 2020, at $21.65. A sustained break of the latter would exert substantial downward pressure on silver. The following support level would be July 15, 2020, high at $19.48. In case of a break of that level, the psychological $19.00 would be the seller's next target.
On the flip side, failure at $21.65 can pave the way for further gains. The first supply zone for XAG/USD would be the psychological $22.00 level, immediately followed by the August 9 low at $22.17. A decisive break of the level mentioned above could push the price towards $23.00.
ADDITIONAL LEVELS TO WATCH
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.
