**Key Takeaways:**
– Silver retreats from $29.11 after failing to clear key resistance at confluence of the 50 and 100-day moving averages.
– RSI signals strong bearish momentum, with next support at $27.18, followed by $27.00 and the 200-DMA at $26.62.
– A rebound above $29.15 could lift Silver toward the key psychological level of $30.00.
**Silver Price Retreats Amid Market Sentiment Shift**
The Silver price experienced a significant drop during the North American session, declining over 3% to trade at $27.89 after reaching a high of $29.11. This downward movement was driven by risk-averse sentiment towards precious metals, coupled with a strengthening Greenback amidst falling US yields.
**XAG/USD Price Forecast: Technical Analysis**
Silver prices retreated after testing the confluence of the 50 and 100-day moving averages at around $29.00-$29.15, leading to a sharp decline of over $1.00 in the precious metal’s value. Sellers gained momentum as the Relative Strength Index (RSI) showed strong bearish signals, indicating a robust downtrend.
Following the drop below $28.00, the next support level for XAG/USD is expected at the August 14 swing low of $27.18. Further downside targets include $27.00 and the 200-Day Moving Average at $26.62. Conversely, if buyers manage to push prices above $29.15, the path is clear for Silver to potentially reach the key psychological level of $30.00.
**Silver FAQs**
Silver is a precious metal with historical significance as a store of value and medium of exchange. Investors often turn to Silver for portfolio diversification, its intrinsic value, or as a potential hedge during periods of high inflation. Silver can be purchased physically in the form of coins or bars, or traded through instruments like Exchange Traded Funds that track its price on global markets.
Price movements in Silver are influenced by various factors, including geopolitical tensions, economic instability, interest rates, US Dollar performance, investment demand, mining supply, and industrial usage. Silver’s conductivity makes it essential in industries like electronics and solar energy, with demand fluctuations impacting its price.
Silver prices generally follow trends in Gold prices, with high Gold/Silver ratios suggesting potential undervaluation or overvaluation of either metal. Economic dynamics in major countries like the US, China, and India also play a role in affecting Silver prices due to their industrial and consumer demands for the metal.