Silver (XAG/USD) remains under pressure on Thursday even as the US Dollar (USD) and US Treasury yields ease. Sellers remain in control after a break below the $60 psychological mark, with the Relative Strength Index (RSI) drifting toward oversold territory. At the time of writing, XAG/USD trades around $58.83, down 1.87% on the day and hovering near two-month lows.
The benchmark 10-year US Treasury yield eases toward 5.30% after reaching 5.36% on Wednesday, its highest level since 2002. Despite the pullback, yields remain elevated near multi-year highs amid persistent inflation risks and expectations of additional rate hikes by the Federal Reserve (Fed). Higher borrowing costs increase the opportunity cost of holding non-yielding assets such as Silver.
Technical analysis
On the daily chart, XAG/USD maintains a bearish near-term bias as it trades below the 50-day, 100-day and 200-day Simple Moving Averages (SMAs). Momentum conditions reinforce this tone, with the Relative Strength Index (RSI) slipping toward the mid-30s, while the Moving Average Convergence Divergence (MACD) stays below zero with a negative line, suggesting persistent downside pressure.
On the topside, initial resistance emerges at the $60 horizontal level, before the clustered band of the 100-day and 50-day SMAs around $64.11-64.23, which would likely limit any corrective bounce, ahead of the higher barrier at $67. On the downside, firm support lies at the $55.00 horizontal level. A break below this level could open the door toward the $50.00 psychological mark. As long as price trades below the nearby $60.00 level, the technical outlook would continue to favor sellers on rallies rather than a sustained recovery.
Comments
Log in or sign up to join the conversation.