Silver prices saw a slight decline, slipping by 0.38% on Monday, driven by elevated US Treasury bond yields and hawkish commentary from the Federal Reserve. At the time of writing, XAG/USD is trading at $29.49.
Technical Outlook for XAG/USD
The outlook for silver remains neutral to bearish following its retreat from an eleven-year high of $32.51. The pair has since moved closer to the 50-day moving average (DMA), currently around $29.01, which serves as the initial support level.
Bearish momentum is evident as the Relative Strength Index (RSI) sits below the 50-midline. Should the price of silver fall below the 50-DMA, the next support level would be the 100-DMA at $26.40, followed by the May 2 low of $26.02.
Conversely, if buyers can push the price above $29.00, they would need to surpass the $30.00 mark to challenge the year-to-date high of $32.51 once again.
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