The recent trend in silver prices has been bearish, with the XAG/USD price experiencing a three-day losing streak. This trend has been confirmed by a bearish chart pattern that emerged two weeks ago, signaling a potential downside bias for the silver prices. The bearish signals have been strengthened by the Moving Average Convergence Divergence (MACD) indicator, which indicates that the bearish momentum is picking up steam.
One of the major factors contributing to the current trend in silver prices is the strengthening US dollar. As the dollar gains strength, it puts downward pressure on the price of silver, as well as other commodities priced in dollars. Additionally, rising bond yields and inflation expectations are also playing a role in the decline of silver prices.
Potential Outcomes for Silver Buyers
For silver buyers, the recent trend in silver prices may be cause for concern. However, there are some potential outcomes that may provide some relief. The 200-day Simple Moving Average (SMA) and $21.30 levels may act as support levels during the theoretical targeting of $17.10. If silver prices do fall to these levels, it may provide an opportunity for buyers to enter the market at a lower price point.
It is worth noting that buyers may need validation from the golden Fibonacci ratio, which may indicate the levels where the selling pressure may end, and buying interest may resume. Buyers should also keep an eye on any major economic or geopolitical events that may impact silver prices, such as the upcoming Federal Reserve meeting or the ongoing tensions between the US and China.
Conclusion
In conclusion, the recent trend in silver prices has been bearish, with the XAG/USD price experiencing a three-day losing streak. Bearish signals from the MACD and a confirmed bearish chart pattern suggest a downside bias for the silver prices. However, potential support levels at the 200-day SMA and $21.30 may provide a buffer during the targeting of $17.10. Buyers may need validation from the golden Fibonacci ratio, and should keep an eye on any major economic or geopolitical events that may impact silver prices.
