The Silver price experienced a sharp decline, dropping over 3% to $27.89 from a high of $29.11. This retreat came after failing to break through the confluence of the 50 and 100-day moving averages, signaling a bearish trend. Market sentiment shifted towards risk aversion, leading to a sell-off in precious metals, while the US Dollar gained strength amid falling yields.
Technical Outlook for XAG/USD
Silver prices faced resistance at the $29.00-$29.15 level, where the 50 and 100-day moving averages intersected. The strong bearish momentum was reflected in the Relative Strength Index (RSI) which showed a steep decline. If the price falls below $28.00, the next support levels are at $27.18, $27.00, and the 200-day moving average at $26.62. On the other hand, a rebound above $29.15 could push Silver towards the psychological level of $30.00.
Silver FAQs
Silver is a highly traded precious metal that investors often turn to for diversification and as a hedge against inflation. Its price movements are influenced by factors such as geopolitical instability, economic conditions, and the strength of the US Dollar. Silver is also widely used in industries like electronics and solar energy, which can impact its demand and price. Additionally, Silver prices tend to follow Gold’s movements, making it a popular choice for investors seeking safe-haven assets.
Overall, the current bearish momentum in the Silver market suggests a potential further decline in prices. Investors should keep an eye on key support levels and market sentiment to make informed decisions about their investments in Silver.
