- Silver prices (XAG / USD) have seen a further decline on Monday, but remain above the psychological level of $ 22.00 for now.
- From a technical perspective, the XAG / USD maintains its bearish bias and is currently trading within a downtrend channel.
Another day down for la plata (XAG / USD). The precious metal is likely to close in the red for the eighth time in the last ten trading days on Monday, currently losing nearly 2%, or trading at a loss of more than 40 cents. Still, silver has managed to stay above $ 22.00, and prices had very briefly dipped below this level early in the session only to rally above it strongly.
USD weakness does little favor for precious metals
The USD has been choppy on Monday, trading weaker for most of the session, only to strengthen significantly at the 16:00 GMT London Fix and recoup all the losses for the day and some. The negative USD bias in the early part of Monday’s session did not help the precious metals markets at all, and although it is at lows, spot gold is still trading down around 0.4%, as well as losses of almost 1% in cash silver.
Silver downside bias intact, bears point to September lows
Having broken below a long-term pennant formed from August late last week, silver’s immediate technical bias remains to the downside. XAG / USD has already turned down from the October low of around $ 22.50 and has already tested the psychological level of $ 22.00. If this level is the next to disappear, the September low of $ 21.68 would be the next target.
Despite silver’s recent minor rally from the lows, its bias continues to point to the downside from a technical perspective. Since approximately November 16, the asset has moved south within a downtrend channel linking the highs of November 20, 23 and 27 to the upside and the lows of November 16, 24 and 27 to lowers it. XAG / USD briefly broke below this trending channel on Monday, but has rallied within it in recent trading. As long as the precious metal continues to abide by this, the gradual move down towards new multi-month lows is likely to continue.
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