XAG / USD drops below $ 22.00, holds target of $ 20.00
- XAG / USD is falling across the board due to the broad US dollar strength.
- Higher US bond yields weigh on the XAG / USD.
- From a technical perspective, a daily break below $ 21.65 could push XAG / USD towards $ 20.00 and beyond.
Silver (XAG / USD) is still under pressure, breaking for the second of three days and trading at $ 21.54, which is down around 4% at the time of writing. The decline in the XAG / USD is attributed to rising US dollar demand, with the US dollar index up 0.64% to stand at 94.34
The market sentiment is optimistic. Major US stock indices closed in the green, with the S&P 500 and Dow Jones gaining 0.16% and 0.23% respectively, with the exception of the Nasdaq Composite, which fell 0.24% during the New York session.
In terms of US bond yields, which influence precious metal prices, the 10-year reference rate fluctuated unchanged at 1.524%.
XAG / USD Price Prediction: Technical Outlook
XAG / USD tests the September 24, 2020 low of $ 21.65. A prolonged break in the latter would put significant downward pressure on silver. The following level of support would be July 15, 2020 with a high of $ 19.48. Should this level break, the seller’s next target would be the psychological USD 19.00.
On the downside, a failure at $ 21.65 can pave the way for further gains. The first supply zone for XAG / USD would be the USD 22.00 psychological level, immediately followed by the August 9 low of USD 22.17. A major break from the above level could propel the price towards $ 23.00.
ADDITIONAL LEVELS TO VIEW