Silver Price Analysis: XAG/USD slumps amid hawkish Fed comments, high US yields
- Silver's price drops to $29.49, posting minimal losses of 0.38%.
- First support level at the 50-day moving average near $29.01.
- If Silver buyers clear $30.00, a re-test of the YTD high of $32.51 is possible.
Silver's price edged lower and posted minimal losses of 0.38% on Monday. Elevated US Treasury bond yields amid Fed hawkish commentary undermined the grey metal. Therefore, the XAG/USD trades at $29.49 at the time of writing.
XAG/USD Price Analysis: Technical outlook
The grey metal is neutral to downward biased after hitting an eleven-year high of 32.51. Since then, the pair retreated towards an area near the 50-day moving average (DMA) at around $29.01, which is the first support level.
Momentum turned bearish, with the Relative Strength Index (RSI) standing below the 50-midline.
Therefore, the first support level for XAG/USD would be the 50-DMA. If the Silver price dives below that level, the next support level will be the 100-DMA at $26.40, ahead of the May 2 low of $26.02.
On the other hand, if Silver buyers conquer $29.00, they must clear the $30.00 handle if they want to re-test the year-to-date (YTD) high of $32.51.
XAG/USD Price Action – Daily Chart
