Silver Price Analysis: XAG/USD surges back above $25.00 on US Treasury yields fall
02.05.2023, 19:10

Silver Price Analysis: XAG/USD surges back above $25.00 on US Treasury yields fall

  • XAG/USD bounced off the weekly lows below the 20-day EMA and reclaimed $25.00.
  • A sour sentiment, and falling US T-bond yields, triggered flows to XAG.
  • XAG/USD would remain upwards above $25.50; otherwise, sellers can drag prices to the 20-day EMA.

Silver price advanced late in the North American session, gaining more than 1%, as US Treasury bond yields dropped. Consequently, a softer US Dollar (USD) increased flows toward the white metal amidst a risk-off impulse. The XAG/USD is trading at $25.28 after hitting a low of $24.58.

XAG/USD Price Analysis

The XAG/USD daily chart shows the white metal edged toward its May high at $25.90 on Monday before reversing its course and closing below the $25.00 figure, a tick above the 20-day Exponential Moving Average (EMA). Even though the Silver price was headed to continue to fall, it jumped off the daily low of $24.58, $0.30 below the 20-day EMA, and climbed to the bottom of an upslope support trendline drawn from March 2023 lows.

If XAG/USD buyers reclaim $25.50, that could pave the way to May’s high before challenging the YTD high at $26.08.

Conversely, if sellers stepped in around resistance at $25.50, it could exacerbate a test of the $25.00 mark before dropping to the 20-day EMA. Once cleared, the next support in play would be the February 2 high at $24.63.

XAG/USD Daily Chart

XAG/USD Daily Chart

 

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