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On Friday, the price of silver dropped sharply and snapped two days of gains amid firm US Treasury bond yields and a strong US dollar. The grey metal was seen trading at around $29.53, down approximately 3.86%.
XAG/USD Price Analysis: Technical Outlook
Silver still appeared to be bullish-biased as Friday’s price action followed through Thursday’s trading, completing a ‘bearish engulfing’ chart pattern. Momentum shifted in sellers’ favor as the Relative Strength Index (RSI) turned bearish and opened the door for further losses.That said, XAG/USD’s first support would be the 50-day moving average (DMA) at $29.09; it will expose the $29.00 figure. Breaching this level could lead to the MTD low of $28.66, ahead of a potential drop towards the 100-DMA at $26.60.On the flip side, if XAG/USD resumes its uptrend in the coming days, the next resistance level would be the June 7 high of $31.54. Clearing this level would target the $32.00 mark before challenging the year-to-date high of $32.51.
XAG/USD Price Action – Daily Chart
XAG/USD Technical Levels
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