XAG/USD rebounds after falling toward $22.00
- Silver tumbles to $22.07, and it was able to hold above the critical $22.00 area.
- It rebounded sharply, alleviating the negative bias.
Silver trimmed losses during the last hours and after hitting a weekly low at $22.07, near the 2021 low of $22.01. The $22.00 zone continues to be a key and intact barrier that if broken, could lead to further losses.
The rebound in XAG/USD pushed the price to levels near $22.50. The metal is now down just 0.35% for the day and flat for the week. A recovery above $22.60 would further alleviate the bearish pressure.
For silver to suggest a potential short-term bottom, it needs to rise above $23.00. Above the next level to consider is the 20-day moving average around $23.60.
The key driver in the recent spike lower was a stronger US dollar across the board amid higher US yields and some caution across financial markets. Federal Reserve official on Friday opened the doors further to a tapering in November, reaffirming the signs that emerged from this week’s FOMC meeting.
XAG/USD daily chart