XAG/USD dips below $23.00 on high US yields, as evening-star emerges

• Silver falls 1% influenced by surging US Treasury yields and Fed’s resistance to a March rate cut.
• Technical analysis shows XAG/USD with a neutral to downward bias; key support at $22.48, and $22.00.
• Potential rebound above $23.00 could challenge the 100-day DMA at $23.23, with further targets at $23.58/66 and the $24.00 level.

Silver price slumps below $23.00 a troy ounce, down 1% on the day, as US Treasury yields soar due to Federal Reserve (Fed) officials pushing back against a March rate cut. Consequently, the non-yielding metal has dropped and printed a two-day low at around $22.86.

From a technical standpoint, XAG/USD is neutral to downward biased, though the grey metal hasn’t been able to drop below the January 11 daily low of $22.48, which could pave the way for further downside. The formation of an ‘evening star’ exacerbated Silver’s fall, with the next support level seen as the $22.00 figure, followed by the November 13 swing low of $21.88.

On the other hand, if XAG/USD’s buyers lift prices above $23.00, they could threaten to challenge the 100-day moving average (DMA) at $23.23. Further upside is seen at the confluence of the 200 and 50-day moving averages (DMAs) at $23.58/66, before testing the $24.00 threshold.

XAG/USD Price Action – Daily Chart

XAG/USD Technical Levels