Commodities

Silver Price Prediction: XAG/USD Tumbles As DXY Surges

Published by
Written By: Abdullah Sarwar
Share
    Summary:
  • Silver Price Prediction: The XAG/USD pair is currently 11.3% down from the yearly highs. It needs to break out of a particular trendline.

Silver (XAG/USD) price has experienced a very sharp correction in May. The price of the precious metal has faced an intense rejection from the $25.4-$26.8 resistance level. Silver price per ounce is currently in the midst of a recovery after closing the last two weeks with a 11.3% loss.

The XAG USD pair turned red on Monday after a 2.58% bounce on Friday. At press time, Silver is trading at $23.21 as the precious metal was down 0.38% at the start of its New York session. The DXY index traded sideways and showed minor gains for the day.

XAG/USD Underperforms XAU/USD

The XAG/USD pair has dropped much more than the XAU/USD in the past few weeks. While Gold price is currently trading 6.43% from its yearly highs, Silver is down 11.3%. There are multiple factors behind this drop in Silver price per ounce, but the biggest of them all is the slower-than-expected recovery in China.

A strong bounce in the DXY index further intensified this selling pressure. The next month’s FOMC meeting will play a key role for commodity prices. The dollar strength index is currently trading at its highest level since March 17.

Silver Price Attempts Key Breakout

Technical analysis reveals that XAG/USD is currently attempting to breakout of the trendline after falling below it a couple of weeks ago. The price briefly dipped below 0.5 fib retracement level but bounced last week. This level currently sits at $23.04, which is 3.3% below the current price. The daily RSI appears to be oversold but it can still go lower.

My Silver price prediciton of $23.04 has already been perfectly met. If the price breaks out of the trendline, I expect a strong relief rally. The DXY index and the FOMC decision will keep the price in check in the coming weeks.

If you are into cryptocurrencies & commodities and need my up-to-date analysis of these assets, you are welcome to join my free Telegram channel.

XAG/USD Chart

This post was last modified on May 29, 2023, 15:12 BST 15:12

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.

Published by
Written By: Abdullah Sarwar