Silver Price: XAG/USD Slides Towards $25 As Fed’s Powell Dismisses Bond Yield Increase

Published by

Written By: Eno Eteng (MSTA)

Mar 04, 2021, 19:53 GMT 19:53

silver price

Summary:

Silver price on the XAG/USD chart shows further decline as Fed's Jerome Powell largely dismisses the rise in bond yields.

Silver prices on the XAG/USD pair are plunging, as are other commodities, as the intraday strengthening of the US Dollar gathers pace after the Fed Chair’s speech.

Fed Chair Jerome Powell largely dismissed the rally in the bond markets when specifically asked about the bond yields, saying that persistent tightening of the financial conditions broadly would be the primary concern of the FOMC board. These comments drove the 10-year bond yield higher, sending it 4.21% higher on the day towards 1.548% as of the time of writing.

Technical Levels to Watch

Today’s decline on the XAG/USD pair has put the support at 25.227 at risk. A breakdown of that area allows silver price bears to pursue downside targets at 24.569 and also the support zone at 23.617/23.966. Below this support zone, fresh targets emerge at 22.549 and 21.637.

On the flip side, a bounce at current levels preserves the 25.227 support and allows the bulls a chance at aiming for 26.034, with 26.325 and 26.868 also serving as additional targets to the upside.

Silver Price; Daily Chart

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.