Silver Price Forecast: XAG/USD plummets over 3% below $28.00

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Silver Price Forecast: XAG/USD plummets over 3% below $28.00
XAGUSDMetalsTechnical Analysis
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The Silver price plunged late in the North American session, down over 3%, and traded at $27.89 after reaching a high of $29.11.

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. Market sentiment turned risk-averse to precious metals, while the Greenback gathered some traction amid falling US yields.

Which factors influence Silver prices? Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar behaves as the asset is priced in dollars .

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