Silver: XAG/USD breaks below $23.00, falls by more than 1%

• Metals remain under pressure after the Fed’s hawkish pause and US data. 
• XAG/USD breaks under $23.00, reaching the lowest level in six days. 

Silver has lost more than 1.50% in the last two hours, dropping from $23.25 to $22.80, marking its lowest since last Friday. It remains below $23.00, indicating ongoing pressure. Gold is also falling sharply.

First the Fed, and then US data

On Wednesday, following the FOMC meeting, metals began to decline from their weekly highs. Silver slid from above $23.50 and found support at $23.00. It briefly rebounded to $23.25 early on Thursday but turned lower again before the release of US data. The decline accelerated after the release of Jobless Claims, pushing Silver below $23.00.

US Initial Jobless Claims dropped more than expected during the week ending September 16 to 201K, the lowest reading since January. These numbers indicate that the labor market remains resilient despite the Federal Reserve's tightening monetary policy.

US yields surged to fresh multi-year highs, while Wall Street futures printed new lows after Jobless Claims. Silver bottomed at $22.79 and, as of writing, it is trading at $22.94, down 1.45% for the day. The bearish pressure is likely to persist while it remains below $23.00. The next support level is at $22.60, followed by $22.45. A recovery above the 20-Simple Moving Average on the hourly chart, currently at $23.17, could strengthen the short-term outlook for silver.

Technical levels