- Silver falls to $26.29 amid a strengthening US Dollar and rising Treasury yields, influenced by rising employment costs.
- Technical support is identified near $26.12, the May 5, 2023 high. Additional support could be found around the 78.6% Fibonacci retracement and the 50-day moving average, approximately $25.50/$57.
- A bounce above $27.00 could set the stage for silver to reach the recent high of $27.73 and challenge the $28.00 resistance level.
The price of Silver fell sharply at the end of the North American session, as the Dollar rose again driven by the rise in US Treasury yields. The rise in the US employment cost index revived talk about the possibility of the Federal Reserve delaying its rate cuts due to inflationary pressures. XAG/USD is trading at $26.29, losing more than 3%.
XAG/USD Price Analysis: Technical Outlook
The daily chart suggests the gray metal has a bullish bias despite the decline in Silver, which would likely see support emerge at $26.12, May 5, 2023 high. A break of the latter will expose the Fibonacci retracement confluence of 78.6% and the 50-day moving average (DMA) around $25.50/$57.
Otherwise, if XAG/USD recovers and breaks back above $27.00, it could retest higher prices. Subsequent gains are seen above the April 26 high at $27.73, followed by $28.00.
XAG/USD Price Action – Daily Chart
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.
