Silver Price Forecast: Crashes Below $77 As RSI Shifts Bearish, Eyes On $75

Silver price collapses by 7.90% on Friday as US Treasury yields skyrocket amid investor fears of a second round of inflation, fueling speculation that major central banks could raise interest rates in the near term. The XAG/USD trades at $76.88 after reaching a high of $83.87.

XAG/USD Price Forecast: Technical outlook

In the last two trading days, the white metal tumbled nearly 12% after peaking shy of $90.00, as sellers stepped in aggressively, pushing Silver spot prices below $77.00.

From a momentum standpoint, the Relative Strength Index (RSI) shifted bearishly a day ago, suggesting sellers are gaining traction. Therefore, the path of least resistance is downwards.

For a bearish continuation, if XAG/USD clears the $75.00 psychological mark, it opens the door to challenge the May 4 swing low of $72.21. Once hurdled, the next stop would be the April 29 daily low of $70.86, ahead of the $70.00 mark.

If buyers want to regain control, they must reclaim the $77.00 level, which is above the 50-day Simple Moving Average (SMA) at $76.98. Above this area, the next resistance level would be the 20-day SMA at $77.79, ahead of the 100-day SMA at $80.94.