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