- XAG/USD bounced off the weekly lows below the 20-day EMA and reclaimed $25.00.
- A sour sentiment, and falling US T-bond yields, triggered flows to XAG.
- XAG/USD would remain upwards above $25.50; otherwise, sellers can drag prices to the 20-day EMA.
Silver price advanced late in the North American session, gaining more than 1%, as US Treasury bond yields dropped. Consequently, a softer US Dollar (USD) increased flows toward the white metal amidst a risk-off impulse. The XAG/USD is trading at $25.28 after hitting a low of $24.58.
XAG/USD Price Analysis
The XAG/USD daily chart shows the white metal edged toward its May high at $25.90 on Monday before reversing its course and closing below the $25.00 figure, a tick above the 20-day Exponential Moving Average (EMA). Even though the Silver price was headed to continue to fall, it jumped off the daily low of $24.58, $0.30 below the 20-day EMA, and climbed to the bottom of an upslope support trendline drawn from March 2023 lows.
If XAG/USD buyers reclaim $25.50, that could pave the way to May’s high before challenging the YTD high at $26.08.
Conversely, if sellers stepped in around resistance at $25.50, it could exacerbate a test of the $25.00 mark before dropping to the 20-day EMA. Once cleared, the next support in play would be the February 2 high at $24.63.