Archived Article This article was published more than 5 months ago. The market data, prices, forecasts, and analysis were accurate at the time of publication but may have changed since then. Please use this article for historical reference only and refer to our latest content for current market information.
- Silver Price Prediction: The latest analysis suggests there is still more downside for XAG/USD before a proper reversal.
Silver (XAG/USD) price appears to be consolidating after a sharp decline in the past two weeks. The precious metal tanked as the price faced an intense rejection from the $25.4-$26.8 supply zone. Silver price per ounce is currently in the midst of a recovery after closing the last two weeks with a 7% loss.
After a 1.5% bounce last Friday, XAG/USD is trading sideways on Monday. At press time, Silver is trading at $23.86 after rising by 0.04% during its London session. The minor gains appear to be caused by a correction in the DXY Index, which slid by 0.11% on the first trading session of the week.
XAG/USD Rebounds, But There’s A Catch
While Gold price has also dropped significantly in the last two weeks, Silver is leading the latest drop in commodity prices. In fact, Copper and Zinc have also shown a negative price action during this time. 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.
Recent stats show that the Chinese economy is still lagging in recovery after the end of lockdown restrictions. This has intensified the recession fears and triggered a sell-off in Silver, Copper, and Zinc. 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.
Silver Price May Drop More – Here’s Why
The following XAG/USD chart suggests that the ongoing correction may go much deeper. This is because the price is yet to hit the 0.5 fib retracement level, which usually results in a potential reversal. This level currently sits at $23.04, which is 3.3% below the current price. The ongoing bounce is due to the bullish RSI divergence on 4H chart.
Therefore, the Silver price prediction of $23.04 appears to be quite valid, considering the momentum behind the ongoing downward push. To avoid this bearish outlook, Silver needs to reclaim the $24.6 level. However, on a higher timeframe, Silver and Gold still remain bullish for me.
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.
