• Silver Price plummeted more than 2.5% as the US 10-year yield closed to the 2.95% threshold.
  • US Real Yields turned positive for the first time since March 2020, a headwind for silver.
  • Silver Price Forecast (XAG/USD): Further correction lies below $25.81.

Silver (XAG/USD) records its most significant daily loss since March 29, plunging 2.68% during the day, amidst surging US Treasury yields led by the short-end and a firm US dollar. At the time of writing, XAG/USD is trading at $25.17

Fed speaking and an upbeat sentiment weighed on precious metals

As reflected by US equities ending the day with gains, a risk-on market mood kept investors turning towards riskier assets. Consequently, the precious metals complex suffered, on the back of Fed speaking, which triggered a jump in US Treasury yields.

On Monday, St. Louis Federal Reserve President James Bullard reiterated his case for increasing interest rates to 3.5% by the end of 22 to slow 40-year-high inflation readings, as he said that US inflation is “far too high.”

Additionally to St. Louis Fed Bullard, on Tuesday, Chicago’s Fed President Charles Evans said that the US economy “will do very well even as rates rise.” Evans added that he supports a “couple” of 50 bps increases, which could lift rates to the 1.25%-2.50% neutral rate.

In the meantime, money market futures expect the Federal Funds Rates to rise to 1.31% in June and 2.76% next February, from 0.33% now.

It is worth noting that the 10-year TIPS broke above negative territory during the day, up to 0.005%, for the first time since March 2020, a headwind for the white metal. The Treasury Inflation-Protected Securities (TIPS) are also called real yields because they subtract projected inflation from the nominal yield on Treasury securities.

Silver Price Forecast (XAG/USD): Technical outlook

Silver (XAG/USD) is still upward biased, despite Tuesday’s fall. However, failure at the 78.60% Fibonacci level at $26.31 opened the door that exacerbated the break to the downside of the 61.80% and 50% Fibonacci retracement, but the 38.20% Fibonacci level at $25.10, capped XAG/USD’s nosedive.

In the scenario of XAG/USD extending its correction, the first support would be $25.10, the 38.20% Fibonacci retracement. A breach of the latter would expose the $25.00 figure, followed by the 50-day moving average (DMA) at $24.83 and then April’s six cycle low at $24.12.

On the flip side, if XAG/USD’s are to regain control, they need a break above $25.81, the 61.80% Fibonacci level. That said, the XAG/USD first resistance would be $26.00, followed by the 78.60% Fibonacci retracement at $26.31.


Today last price 25.17
Today Daily Change -0.69
Today Daily Change % -2.67
Today daily open 25.86
Daily SMA20 25.03
Daily SMA50 24.75
Daily SMA100 23.78
Daily SMA200 23.88
Previous Daily High 26.22
Previous Daily Low 25.61
Previous Weekly High 25.87
Previous Weekly Low 24.68
Previous Monthly High 26.95
Previous Monthly Low 23.97
Daily Fibonacci 38.2% 25.99
Daily Fibonacci 61.8% 25.85
Daily Pivot Point S1 25.58
Daily Pivot Point S2 25.29
Daily Pivot Point S3 24.97
Daily Pivot Point R1 26.18
Daily Pivot Point R2 26.51
Daily Pivot Point R3 26.79



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