- Silver price falls more than 1.5% after hitting a two-month high of $31.43, currently trading at $30.66.
- A daily close below $30.66 could exacerbate a drop towards the psychological level of $30.00, targeting the 100-day moving average (DMA) and the 50-day moving average (DMA).
- If XAG/USD sustains above $31.00, a retest of the September 20 high at $31.44 is possible.
Silver price retreats after hitting a two-month high of $31.43, falling by over 1.50% and trading at $30.66 at the time of writing. Although US economic data was weak and US Treasury bond yields remained unchanged, the grey metal failed to gain traction on Monday.
XAG/USD Technical Outlook
Silver has a bullish bias, although a decisive break below the descending resistance-turned-support trend line may pave the way for further decline. The Relative Strength Index (RSI) peaked without breaking 64 and turned lower, indicating that sellers are stepping in.
If the XAG/USD closes below $30.66 on a daily basis, that could exacerbate a decline to challenge the $30.00 mark. In case of further weakness, the next target would be the 100-day moving average (DMA) at $29.47, followed by the 50-day moving average (DMA) at $28.96.
On the other hand, if XAG/USD sustains above $31.00, look for a retest of the September 20 daily high at $31.44.
Silver 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.
