Silver price (XAGUSD) slumps today to two-month lows giving up 4.77% at 16.90 as investors liquidate cash positions ahead of the weekend. Speculation that central banks might intervene in the markets during the weekend pressures the safe-haven assets such as gold and silver.
The silver price has lost over 10% from the Monday highs at 18.94. The sell-off accelerated today after the silver price breached below the 100-day moving average while as of writing the price also slips below the 200-day moving average.
The silver is under heavy selling pressure that cancels the recent rally while the outlook turns bearish.
On the downside, first intraday support for the silver price will be met at $16.8 the daily low. Below that level more bids might emerge at 16.50 the low from December 9, 2019. Next support area to watch on the downside stands at $16.08 the August 5, 2019 low.
On the upside, the immediate hurdle for the XAGUSD will be met at 16.99 the 200-day moving average. Extra selling pressure for the silver price will be met at 17.53 the 100-day moving average. While a break above today’s high at 17.84 might cancel the bearish momentum.