Silver Price Analysis: XAG/USD tumbles over 3%, pressured by strong US Dollar

• Silver's sharp decline to $22.89 was driven by US bond yield fluctuations and USD strength before the release of key Fed minutes.
• A potential break below the three-month support trendline could lead XAG/USD towards $22.00 and previous lows.
• Recovery above the 100-day moving average might fuel a rally, targeting key resistances at $23.64 and $24.00.

Silver plunged more than 3% on Wednesday, as US Treasury bond yields pare their earlier gains, while the Greenback (USD) exploits to the upside ahead of the release of the Federal Reserve’s December meeting minutes. At the time of writing, the XAG/USD is trading at $22.89 after hitting a daily high of $23.72.

The daily chart portrays the grey metal as neutral-biased, but if it prints a daily close below the three-month-old upslope support trendline drawn from the lows of October 2023, that could pave the way for further losses. In that outcome, the XAG/USD could dive below the $22.00 figure and test the November 13 low of $21.88, followed by the October monthly low of $20.69.

On the other hand, if Silver trims some of today’s losses and buyers reclaim the 100-day moving average (DMA) at around $23.29, that would keep buyers hopeful of higher prices, with the first resistance level emerging at the confluence of the 50 and 200-DMAs, each at $23.64 and $23.66, respectively. Once those levels are surpassed, the next resistance would be the $24.00 mark.

XAG/USD Price Action – Daily Chart

XAG/USD Technical Levels