Silver Price Analysis: XAG/USD declines following global PMI surveys

• XAG/USD dropped for a third consecutive day below $24.50. Eyes un bullish cross between the 20 and 100-day SMA.
• German and British yields dropped following weak local PMIs, while Americans rose somewhat.
• Eyes on Fed, ECB and BoJ decisions this week.

At the start of the week, the XAG/USD Silver spot price lost ground as the USD recovery made the grey metal struggle to find demand. The sessions highlight where American and European PMI surveys and focus shifted to the main central bank monetary policy decisions this week.

German and British Manufacturing and Services PMIs came in lower than expected, while the American indexes came in mixed.  The Manufacturing PMI from the US rose to 49 vs the 46.4 expected and the previous 46.3, while the Services Index dropped to 52.4, lower than the 54 expected and the last figure of  54.5.

As a reaction, The USD DXY index is trading with gains above 101.00, with American yields seeing little movement. The 2-year yield rose to 4.85%, while the 5 and 10-year rates stand at 4.12% and 3.85%, with mild increases. For Wednesday’s Federal Reserve (Fed) decision, markets expect a 25 basis point announcement but continue to bet on little odds of another hike past July. In that sense, the monetary policy statement followed by Chair Powell’s presser will be closely watched for clues regarding forward guidance.

Regarding Thursday's European Central Bank (ECB) decision, markets expect a 25 bps hike, while on Friday, investors see the Bank of Japan (BoJ) maintaining its dovish stance.

XAG/USD levels to watch

According to the daily chart, the technical outlook for the XAG/USD is bearish for the short term are indicators took a big hit in the previous sessions. However, traders should eye the 20 and 100-day Simple Moving Average (SMA) movements as they are about to perform a bullish cross at the $23.75 area, which could provide vital support to the grey metal.

Support levels: $24.15, $24.00, $23.75. 
Resistance levels: $24.50, $25.00, $25.30.

XAG/USD Daily chart