The silver price dropped below $27.00, closing lower for the second consecutive day, indicating a bearish momentum in the market. Key support is seen at $26.00, with a possible test of the 200-day moving average at $26.04. Resistance levels to monitor include $27.00, $28.00, the 100-day moving average at $28.69, $29.00, and the 50-day moving average at $29.63.
On Tuesday, the silver price decreased by 0.99% and closed below $27.00 for the second day in a row. This downward trend could lead to further losses as the metal faces pressure from high US yields and a stronger US Dollar. However, tensions in the Middle East are providing some support to silver prices. Currently, XAG/USD is trading at $26.97 after reaching a daily high of $27.56.
XAG/USD Price Forecast: Technical Outlook
The technical outlook for silver is neutral to downward biased as it has slipped below the 100-day moving average, now acting as resistance at $28.59. The Relative Strength Index (RSI) shows bearish momentum with a steep decline towards oversold conditions. In the short term, XAG/USD could test the 200-day moving average at $26.04.
If the price continues to fall, the next support levels for silver will be at $26.00, $24.33 (March 27 low), and $22.28 (February 28 low). On the upside, the first resistance level is at $27.00, followed by $28.00, the 100-day moving average at $28.69, $29.00, and the 50-day moving average at $29.63.
XAG/USD Price Action – Daily Chart
Silver FAQs
Silver is a precious metal traded among investors for its store of value and potential as a hedge during high-inflation periods. Factors affecting silver prices include geopolitical instability, interest rates, US Dollar strength, investment demand, mining supply, and industrial usage in sectors like electronics and solar energy.
Overall, the current trend in the silver market is bearish with key support at $26.00 and potential resistance levels at $27.00, $28.00, $29.00. Investors should closely monitor these levels and consider the various factors influencing silver prices before making any investment decisions.