Silver Price Analysis: XAG/USD plunges to two-month lows, below the 200-day EMA

• XAG/USD is sinking below the key $22.96 level, the 200 day EMA.
• The bearish RSI and RoC values ​​indicate a strong sell-off, justifying a further fall in XAG/USD.
• XAG/USD bullish resistance was found at the $23.00 zone, followed by a challenge from the 100 day EMA.

The price of the Silver breaks below the 200 day EMA of $22.96 as sellers pile in, dragging prices towards a fresh two-month low of $22.50 as US Treasury yields rise The US put pressure on the precious metals segment. At the time of writing, the XAG/USD pair is trading at $22.75, while Gold (XAU/USD) is trading at $1,931.02, down 1.64% and 0.23%, respectively.

Risk aversion sentiment is weighing on the precious metals segment. Investors remain uncertain as Fed Chairman Jerome Powell begins his two-day testimony in the US Congress, which can be followed here. The 10-year US Treasury yield is trading at 3.775% and gaining 4.6 bps, while US real yields, which directly influence XAG/USD prices, are up five bps to 1.555%.

XAG/USD Price Analysis: Technical Perspective

XAG/USD remains neutral to the downside, although it could turn lower if there is a daily close below the May 25 swing low of $22.68. That would mean that the silver price would break through the 200 day EMA threshold and, from a technical perspective, turn XAG/USD bearish.

Further cementing the bearish case for XAG/USD is the relative strength index (RSI) in negative territory, while the three-day exchange rate (RoC) continues to fall as sellers gain momentum.

That being said, on that outcome, XAG/USD could dip towards the March 21 daily low of $22.14 before challenging the $22.00 figure. Breaking above this last level would uncover the March 16 low at $21.47, followed by $21.00.

Conversely, if XAG/USD recaptures the 200 day EMA, this could expose the $23.00 zone to the upside, followed by the 100 day EMA at $23.52.

XAG/USD Price Action – Daily Chart