- XAG / USD falls due to the general strength of the US dollar.
- Rising US bond yields weigh on XAG / USD.
- From a technical standpoint, a daily break below $ 21.65 could put pressure on XAG / USD towards $ 20.00 and beyond.
Silver (XAG / USD) is still under pressure, slumps for the second of three days, trading at $ 21.54, down around 4% at the time of writing. XAG / USD decline is attributed to increased demand for US dollars, with the US dollar index rising 0.64% to 94.34
Market sentiment is optimistic. Major US stock indices finished in the green, with the S&P 500 and Dow Jones posting gains of 0.16% and 0.23% respectively, with the exception of the Nasdaq Composite, which lost 0.24%, during from the New York session.
Regarding US bond yields, which influence precious metal prices, the benchmark 10-year note hovered around 1.524%, unchanged.
XAG / USD Price Prediction: Technical Outlook
XAG / USD tests September 24, 2020 low at $ 21.65. A sustained breakout of the latter would put substantial downward pressure on Silver. The next support level would be July 15, 2020, at $ 19.48. If this level is broken, the psychological $ 19.00 would be the seller’s next target.
On the other hand, a failure at $ 21.65 can set the stage for further gains. The first supply zone for XAG / USD would be the psychological level of $ 22.00, immediately followed by the August 9 low of $ 22.17. A decisive breakout from the above mentioned level could push the price towards $ 23.00.
The relative strength index is at 28, at oversold levels, which could signal an upcoming XAG / USD consolidation.
ADDITIONAL LEVELS TO MONITOR