In recent days, the silver market has seen a significant downward trend, with the XAG/USD pair dropping below the critical support level of $30.00. This movement has sparked concerns among traders about the possibility of further losses, as a bearish-engulfing pattern has emerged, indicating a potential shift in market sentiment. In this article, we will explore the latest developments in the silver market, analyze the factors influencing price action, and discuss the implications for traders and investors.
Silver prices have fallen by 3.86%, driven by strong US Treasury yields and a robust US Dollar. Currently trading at $29.53, the metal has experienced a sharp decline after two days of gains.
XAG/USD Price Analysis: Technical Outlook
Despite the recent bearish engulfing pattern and the shift in momentum towards sellers, Silver maintains a bullish bias. The Relative Strength Index (RSI) has turned bearish, suggesting the possibility of further declines. The immediate support levels to watch are the 50-day moving average (DMA) at $29.09, followed by $29.00 and the month-to-date (MTD) low of $28.66. A breach of these levels could lead to a test of the 100-DMA at $26.60.
On the upside, if Silver resumes its upward movement, the key resistance levels to monitor are the June 7 high at $31.54, $32.00, and the year-to-date (YTD) high of $32.51.
XAG/USD Price Movement – Daily Chart
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