- Silver pulls back from $29.11 after failing to break through key resistance at the confluence of the 50 and 100-day moving averages.
- XAG/USD shows strong bearish momentum, with the next support at $27.18, followed by $27.00 and the 200-day moving average (DMA) at $26.62.
- A rebound above $29.15 could propel Silver towards the key psychological level of $30.00.
Late in the North American session, Silver prices plummeted by over 3%, trading at $27.89 after reaching a high of $29.11. The shift in market sentiment turned risk-averse towards precious metals, while the US Dollar gained traction amid falling US yields.
XAG/USD Price Forecast: Technical Outlook
Silver prices pulled back sharply after testing the confluence of the 50 and 100-day moving averages (DMAs) around the $29.00-$29.15 range, intensifying the decline by more than $1.00.
Bearish momentum gained strength as sellers took control, with the Relative Strength Index (RSI) showing a steep decline, indicating a strong downtrend.
With XAG/USD falling below $28.00, the next support level is the August 14 swing low at $27.18. If this level is breached, bears could push prices down to $27.00, with the 200-DMA at $26.62 as the next key target.
On the other hand, if buyers manage to push XAG/USD above $29.15, the precious metal could remain supported, with the next target being the psychological $30.00 level.
XAG/USD Daily Price Action Chart
