Silver Price Analysis: XAG/USD tumbles to four months lows under $24.50
- Silver is falling more than 2%, while gold remains flat.
- US dollar mixed, and Treasury yields down.
Silver is falling by 2.60% on Tuesday after turning decisively to the downside during the American session. XAG/USD bottomed at $24.48, the lowest level since early April. As of writing, the metal remains at the lows, under pressure.
No particular trigger was behind the move in XAG/USD. End-of-month flows around the London fix, and technical factors, fueled the slide. At the same time, gold prices only moved off highs, back into neutral territory for the day. US yields are falling, and the DXY is down 0.30%.
The decline under $25.00 on Tuesday with more intensity compared to last week, exposed previous monthly lows ($24.72) that were no obstacle for the sell-off. Now the area around $24.50 is the immediate support and below the next one stands at $24.30.
The current sell-off is showing no signs of stabilization. Very short-term technical indicators are already in oversold territory. At the moment, no support appears to be strong enough.
Technical levels