The XAGUSD currency pair fell to a low of $22.35 during the day, but eventually stabilized at approximately $22.60.

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• XAG/USD dropped to a daily low of $22.35 but then settled at around $22.60.

The pair currently trades last at 22.665.

The previous day high was 22.84 while the previous day low was 22.58. The daily 38.2% Fib levels comes at 22.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 22.74, expected to provide resistance.

At the start of the week, risk-off flows predominate the markets and limit the Silver’s upside. With no relevant data released, higher US Treasury yields and a stronger USD dictate the pace of the metal.

The US bond yields are edging higher after the release of inflation from July from the US data last week. The 10-year bond yields 4.19%, with 1.29 % gains on the day. The 2-year yield stands at 4.96% with 1.25 % gains, and the 5-year yield is at 4.38% with 1.29 % gains. In line with that, the USD measured by the DXY index rose to its highest level since early July, above 103.00 and limiting the precious metal’s gains.

Regarding the next Federal Reserve decisions, rising US yields hint that tightening expectations have risen. According to World Interest Rate Possibilities (WIRP) tool, the markets
that a skip in September is likely while the odds of a 25 basis point (bps) hike in November rose nearly 40%. That being said, the Federal Open Market Committee’s (FOMC) minutes from July’s meeting will provide markets with a clearer outlook regarding the official’s stance, which could generate volatility in the US bond markets and hence in the XAU/USD price dynamics.

Analysing the daily chart, XAG/USD presents a bearish outlook for the short term, with both Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remaining in negative territory. Additionally, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), suggesting that the bears are firmly in control of the bigger picture, leaving the buyers with tasks to accomplish.

Support levels: $22.50, $22.30, $22.00.

Resistance levels: $23.27 (200-day SMA), $23.50, $24.00.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.57 at the time of writing. Pair opened at 22.69 and is trading with a change of -0.53 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 24.04, 50 SMA 23.66, 100 SMA @ 24.05 and 200 SMA @ 23.26.

The previous day high was 22.84 while the previous day low was 22.58. The daily 38.2% Fib levels comes at 22.68, expected to provide resistance. Similarly, the daily 61.8% fib level is at 22.74, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.56, 22.43, 22.29
• Pivot resistance is noted at 22.83, 22.97, 23.1

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