Silver Price Forecast: XAG/USD plunges 5% as momentum indicators turn bearish
Silver (XAG/USD) falls around 5% on Monday, slipping to its lowest level since early August.
The price of silver (XAG/USD) declines around 5% on Monday, reaching its lowest point since early August. Factors contributing to this drop include a stronger US Dollar and higher US Treasury yields. As the US and Iran continue their dispute, oil prices remain elevated, which strengthens the belief of additional Federal Reserve rate hikes.
Currently, XAG/USD is trading near $61.08. The US 10-year Treasury yield has risen to 5.27%, the highest level since 2007, while the US Dollar Index (DXY) nears a two-month peak at 101.25. The likelihood of another Fed rate hike in October stands at 70%, according to CME FedWatch. Technical indicators, such as moving averages and the Relative Strength Index (RSI), indicate a bearish near-term outlook for silver.
Support is provided by the 61.8% Fibonacci retracement at $61.02, the 50-day SMA at $63.88, and the 78.6% level at $58.27.
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