- XAG/USD fell $1.28 during the US trading session, backsliding into $22.30.
- Bulls failed to establish a floor in XAG/USD prices and Silver slumped to a new weekly low.
- Broad-market reversal in risk appetite sending Silver into the floorboards.
Silver prices have tumbled from a late-week peak for Friday’s trading, skidding into $22.30 after falling over 5.5% over the course of the US trading session.
The XAG/USD is back into familiar lows that Silver has cycled into for most of the year, driven by a resurgence in US Dollar (USD) bidding as global markets routinely pivot on fears of an impending economic slowdown that could roll over into a full-blown ‘hard landing’ if left unchecked.
Silver prices have consistently waffled on the top end ever since slipping from 2023’s early peak above $26.00, a high set back in May.
Friday’s sharp reversal only serves to highlight the XAG/USD’s large exposure to broader market sentiment, tracking closely with US Dollar flows.
XAG/USD technical outlook
Silver is trading back into a familiar bottom just above the $22.00 major psychological level. A descending pattern of lower highs in XAG/USD is capping off long-term bullish potential, and a descending trendline is marked in from May’s peak just north of $26.00.
Despite Friday’s bomb-drop into the floor, the XAG/USD could potentially be set for another bullish turn around the cyclical pattern if Silver bidders can amass enough to arrest the current slide.
On the down side, if risk-off price pressure maintain through the weekend and into next week, Silver could see itself dropping further below $23.00 and set up a bearish push into $22.00 and beyond into six-month lows.
XAG/USD daily chart
XAG/USD technical levels
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