Silver Price Forecasts: XAG/USD nears seven-month lows at $61.00 as US yields jump
Silver (XAG/USD) has resumed its downtrend on Tuesday, following a tame recovery attempt on Monday, and trades in the mid-range of $62.00, drawing closer to year-to-date lows in the $61.00 area.
Precious metals struggle on Tuesday as rising bets on US Federal Reserve (Fed) rate hikes this year boost Treasury yields. Recent US data and hawkish rhetoric from the new Fed Chairman, Kevin Warsh, have prompted markets to price in a 70% chance of some monetary tightening in September, according to data by the CME Group’s Fed Watch Tool.
The yield on the US benchmark 10-year Treasury note jumped to above 4.5% on Monday, though it has since pulled back, and the 2-year yield, closely tied to interest rate expectations, reached 4.23%, its highest level in the last 16 months. The rally in yields is weighing heavily on yieldless precious metals.
Technical Analysis: Bears aim for the $61.00 low
XAG/USD trades at $62.46, extending a bearish phase after losing the $63 handle. The4-hour Relative Strength Index (14) slips toward the oversold band, yet with no clear sign of a correction in sight. The Moving Average Convergence Divergence (MACD) stays in negative territory.
Immediate support is at the $61.00 area, which held bears in March and earlier in June. Further down, the $60.00 psychological level and the 127.2% Fibonacci retracement of the June 11-15 rally, at the $59.00 region, could act as support, considering the overstretched cycle.
On the topside, initial resistance appears at the June 19 low of $63.34. If this level is breached, the focus will shift to Monday's high, just above $67.00, ahead of the June 15, 16, and 18 highs between $71,20 and $71,55
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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