• 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.

XAG/USD

Overview
Today last price 25.17
Today Daily Change -0.69
Today Daily Change % -2.67
Today daily open 25.86
 
Trends
Daily SMA20 25.03
Daily SMA50 24.75
Daily SMA100 23.78
Daily SMA200 23.88
 
Levels
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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bears flirt with 0.6900 amid recession woes, Aussie Retail Sales, Fed’s Powell eyed

AUD/USD bears flirt with 0.6900 amid recession woes, Aussie Retail Sales, Fed’s Powell eyed

AUD/USD remains depressed around 0.6900, after a two-day downtrend, as traders await key Aussie data during Wednesday’s Asian session. That said, the risk barometer pair refreshed its weekly high before closing in the red for the second consecutive day on Tuesday.

AUD/USD News

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD is trading around 1.0520 in early Asia following a choppy Tuesday on the back of a firmer US dollar, China relaxing its rigid COVID protocols coupled with disappointing US consumer sentiment data and central bank rhetoric. 

EUR/USD News

Gold aims to recapture weekly lows ahead of Fed Powell and US PCE

Gold aims to recapture weekly lows ahead of Fed Powell and US PCE

Gold price is auctioning around a two-day low at $1,818.64 and is expected to slip further to near the weekly low at $1,816.98. The precious metal has failed to capitalize on the event of banning the imports of gold from Russia, which generates the second-highest revenue for Moscow after oil and gas. 

Gold News

Compound price: You won't believe how high COMP can rally

Compound price: You won't believe how high COMP can rally

Compound's COMP price could be a very favorable digital asset in the coming weeks. This article is meant to inform investors of data excluded on Tradingview's Binance, Coinbase and Kucoin exchanges for reasons that have yet to be explained. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures