As the world’s best investment manager and financial market’s journalist, I bring you the latest update on Silver prices. The XAG/USD pair is currently hovering near the $28.00 mark, facing bearish pressure from the Relative Strength Index (RSI) and moving averages above the current levels.
If the price breaks below $28.00, we can expect further declines towards $27.71, with a potential target at the 200-day moving average of $26.59. On the other hand, bulls need to reclaim the 100-DMA at $29.14 to shift momentum and regain control over Silver prices.
On Tuesday, Silver prices ended the session with losses of more than 1.50% due to US economic data indicating a slowdown in manufacturing activity. This supports the Federal Reserve’s decision to cut interest rates in September, leading to a stronger Greenback as the labor market cools gradually.
Technical Outlook for XAG/USD Price
Currently, XAG/USD is trading around $28.05 after hitting a two-week low of $27.71. Despite some recovery by buyers, the overall momentum remains bearish, as indicated by the RSI and the 50/100-daily moving averages above the current price level.
In case of a bearish continuation, the price must break below $28.00 and then target the September 3 low of $27.71. Further weakness could lead to a drop towards the August 14 swing low of $27.18, followed by the 200-DMA at $26.59.
On the flip side, buyers need to push the price above the 100-DMA at $29.14 to take control of the market.
Silver FAQs
Silver is a precious metal widely traded among investors for its historical value and use as a store of wealth. Investors often turn to Silver to diversify their portfolios, hedge against inflation, or benefit from its intrinsic value. The price of Silver can be influenced by various factors such as geopolitical instability, economic conditions, and demand from industries like electronics and solar energy.
Understanding the dynamics of Silver prices can help investors make informed decisions and manage their financial assets effectively.