silver price

XAG/USD Could Decline Below $26.00 As US ISM Manufacturing PMI Fails to Boost Silver Prices

Spot silver prices were a tad higher in Monday’s London session as bond yields pulled back. However, a bounceback in bond yields quickly eroded these gains. Not even the ISM Manufacturing PMI data, which came out better than expected, could allow spot silver a way back to the upside. 

This drop has extended into Tuesday’s trading session, where a 1.4% gain in US bond yields appears to have aided the decline. A stronger US Dollar is also exerting pressure on the XAG/USD this Tuesday.

Bond market price action continues to drive price action in silver (and gold) markets. 

Technical Levels to Watch

Silver prices on the XAG/USD pair have decidedly taken out the 26.86 support and have mounted a strong intraday violation of 26.325, which the bulls are defending vigorously. This move touched off support at 26.034 before the bounce. It remains a potential target for bears, and 26.325 has to give way for this to occur. Below that level, 25.386 and 25.227 line up as additional targets to the south. 

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On the flip side, if bulls can keep the current candle at or above the 26.325 price level, this could form a pinbar on the support, allowing silver prices some potential for a recovery towards 26.868. Any extended upside move that targets the 27.502 and 28.073 price levels may need some support from elsewhere (falling bond yields). 

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XAG/USD Daily Chart

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