- Silver building up bearish momentum after breaching $27.57 support level.
- A brighter market mood amid receding geopolitical risks is weighing on Precious metals.
- XAG/USD has scope for further decline, next targets are $26.85 and $26.30.
Silver (XAG/USD) is going through a deep correction on Monday, with precious metals suffering as concerns about an escalation of the Middle East conflict ebb. The lower US Yields have failed to support demand for the pale metal, which has depreciated about 5.7% from Friday’s highs.
XAG/USD Price Analysis: Technical outlook
Bears gained confidence on Monday after pushing prices below the $27.57 support area. Technical indicators are pointing lower, with the 4h approaching but not yet at oversold levels and price action below the 50 and the 100 SMAS.
Using Elliott wave analysis, the pair seems on the 4th corrective wave of a five-wave bullish cycle. The 38.2% Fibonacci retracement of the mentioned bull run, at $26.85 is a common target for corrections, and close below is the April 5 low, at $26.30.
On the upside, the pair would need to regain the $27.60 previous support level to shift its focus to the $27.95 and Mid-April’s high, at $29.80.
XAG/USD Price Action - 4 Hour Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0850 as USD rebounds
Following Tuesday's choppy action, EUR/USD came under modest bearish pressure and declined below 1.0850 on Wednesday. The recovery seen in US Treasury bond yields and the cautious market mood support the USD ahead of FOMC Minutes and weigh on the pair.
GBP/USD falls to 1.2700, erases UK CPI-led gains
After rising to its highest level in two months above 1.2750 on UK CPI data, GBP/USD lost its traction and turned negative on the day near 1.2700. The souring market mood helps the USD find demand and makes it difficult for the pair to preserve its bullish momentum.
Gold drops toward $2,400 pressured by rising US yields
Gold price turned south on Wednesday and dropped below $2,410. As markets wait for the Federal Reserve to release the minutes of the April 30-May 1 policy meeting, the benchmark 10-year US Treasury bond yield pushes higher and weighs on XAU/USD.
Shiba Inu price buy signal hints 25% upswing on the horizon for SHIB holders Premium
Shiba Inu (SHIB) price continues its struggle above a key hurdle. This development comes as SHIB, an ERC-20 meme coin, reacts to the Ethereum spot ETF approval news.
Sticky service prices put BoE rate cuts on ice
UK price growth fell last month, with the annual headline rate falling to 2.3% from 3.2%. This is the lowest level since the summer of 2021, and was driven by a decline in the price of household energy bills.