- XAG/USD suffers worst daily drop in months.
- The price reaches the lowest level in five weeks, pressured after losing key support levels.
- Gold remains stable, US stocks rise.
the price of silver it falls sharply on Monday, as the US dollar remains relatively stable and despite the rise in equities. The XAG/USD pair recently reached a fresh 1-month low of $22.73, before bouncing towards $23.00.
During the Asian session, silver reached a 5-day high at $24.15, but failed to hold above $24.00. After moving sideways for most of the European session, XAG/USD broke the $23.60 support zone and fell, also missing the $23.10/$20 zone.
At some point in the day, silver was down more than 5% before paring some losses. The sharp drop comes even as gold is trading mostly flat on the day and even as Wall Street rises. The Dow Jones rises 0.80% and the SP500 gains 1.05%.
The technical outlook has deteriorated significantly for XAG/USD. The 20-day SMA, today at $23.70 is beginning to turn south. The next strong support is at $22.50.
A recovery above $23.20 would ease the bearish pressure. A daily close above $24.10 would open the doors to further gains in the medium term.
XAG/USD 4-hour chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
