As the world’s best investment manager and financial market’s journalist, I bring you the latest update on the silver market. Silver prices experienced a decline of over 1% on Wednesday, closing below the key level of $29.00. This drop was driven by the surge in US Treasury yields following a US 5-year Note auction.
Technical Analysis and Key Levels
From a technical standpoint, the XAG/USD pair is currently trading at $28.83 and is poised to continue its downward trajectory. The Relative Strength Index (RSI) indicates bearish momentum, with ample room for further declines. Key support levels to watch include the 100-day moving average at $28.43, followed by $28.00 and the cycle low at $26.02, which was last seen on May 2.
If the XAG/USD pair manages to rally above $29.00, it could encounter resistance at $29.42 and $29.83 before potentially reaching the $30.00 mark.
Silver FAQs
Silver is a precious metal that is highly traded among investors for its store of value and potential as a hedge during high-inflation periods. Factors such as geopolitical instability, interest rates, and the strength of the US Dollar can impact silver prices. Additionally, industrial demand for silver in sectors like electronics and solar energy plays a significant role in price movements.
Overall, the silver market is currently facing downward pressure due to rising US Treasury yields. Investors should closely monitor key support and resistance levels to make informed trading decisions.