Silver Price Analysis: XAG/USD slumps to six-week lows amidst higher US T-bond yields

• Silver prices slide as US retail sales data spur a jump in US Treasury bond yields, driving XAG/USD down to six-week lows around $23.64.
• Technical outlook shows a double-top chart pattern with XAG/USD between 50 and 100-day EMAs, while a bearish RSI suggests further declines may be imminent.
• XAG/USD could target the $22.90 level if the 100-day EMA is breached, while reclaiming the $24.00 figure could pave the way for a rally toward the 50-day EMA and potentially $25.00.

Silver price continues to validate a double-top formation, falls to fresh six-week lows around $23.64, shy of testing the 100-day Exponential Moving Average (EMA) at $23.48. Factors like US Retails Sales improving in April spurred a jump in US Treasury bond yields, a headwind for the white metal. Therefore, the XAG/USD is trading at $23.73 after reaching a daily high of $24.10.

XAG/USD Price Analysis: Technical outlook

A double-top chart pattern remains as the XAG/USD continued to slide, sitting between the 50 and 100-day EMAs, each at $24.24 and $23.48, respectively. The Relative Strength Index (RSI) indicator at bearish territory suggests Silver’s fall could continue in the near term, but the 3-day Rate of Change (RoC) has begun to show that sellers are losing momentum.

If XAG/USD cracks the 100-day EMA, that will exacerbate a fall toward the $23.00 a troy ounce figure before sellers can reach the double-top’s objective to fall toward $22.90, shy of testing the 200-day EMA at $22.77.

On the other hand, if XAG/USD reclaims the $24.00 figure, that could exert upward pressure on the XAG/USD and open the door to test the 50-day EMA. A breach of the latter will expose the February 2 high at $24.63 before challenging the $25.00 psychological figure.

XAG/USD Price Action – Daily chart