Silver prices saw a rebound on Wednesday as US Treasury bond yields dropped in response to weaker-than-expected employment figures from the United States. As of the latest report, XAG/USD is trading at $29.98, marking a gain of 1.69%.
XAG/USD Price Analysis: Technical Outlook
On the technical front, Silver’s daily chart has revealed a double top pattern, suggesting potential for further declines. Despite a recent rise towards the May 24 low, now a resistance point at $30.05, buyers are finding it difficult to push past the $30.00 mark, indicating possible continued downward movement.
Should XAG/USD drop below the recent cycle high of $29.79 recorded on April 12, it could lead to a test of the $29.00 level. A break below this threshold would expose former key resistance levels that have since turned into support, such as the May 18, 2021 high of $28.74 and the June 10, 2021 high of $28.34. The next target would be the double top objective at $27.80.
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