Silver Price Analysis: XAG/USD Dips Below $23.00 And The 200-Day EMA As US Yields Surge

By Christian Borjon Valencia of FXStreet

Where Forex Never Rests • Jul 6, 2023 at 2:24 PM EDT

Silver slides 1.82% as soaring US Treasury bond yields and heightened odds of a Fed rate hike in July weigh heavy.

Silver price dropped below the $23.00 mark as US Treasury bond yield soared after the latest Fed’s minutes and a tranche of US economic data increased the odds for Fed’s July rate hike. At the time of writing, the XAG/USD is trading at $22.69, down 1.82%.

XAG/USD Price Analysis: Technical outlook

XAG/USD turned bearish during Thursday’s session. Silver’s price dropping below the 200-day Exponential Moving Average (EMA) at $22.93 opened the door for further losses, though so far failed to crack the May 26 swing low of $22.53.

If XAG/USD stays above the latter, the white metal could consolidate at around the $22.50-$22.90 range. Otherwise, Silver’s sliding below the bottom of the range will expose the June 22 swing low of $22.11 before testing $22.00. Once cleared, the XAG/USD next support will be the March 16 swing low of $21.47.

Conversely, if XAG/USD stages a comeback and reclaims the 200-day EMA, the XAG/USD’s next resistance will be the $23.00 psychological level. A breach of the latter will increase the odds for a recovery to the 20-day EMA at $23.06.

XAG/USD Price Action – Daily chart

(Click on image to enlarge)

XAG/USD Daily chart

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