Silver shudders, XAG/USD tumbles 13% as metals rout continues
Spot Silver markets took a fresh beating on Thursday, with XAG/USD tumbling 13% in a single day. Intraday Silver bids have been pushed back onto the bottom end of a 40% peak-to-trough decline that dragged Silver prices sharply down from record highs posted at $121.66 just last week.
Risk-off market sentiment hammers metals
Silver prices are following a broad-market trend into the red on Thursday as global investor sentiment rotates into a firm risk-off stance. Silver tanked 13%, pushing XAG/USD back below $76.00 after a brief, half-hearted rebound earlier in the week from fresh lows in the $72.50 region.
Silver price forecast
In the daily chart, XAG/USD trades at $75.90. The 50-day EMA has flattened and now caps price, with dynamic resistance at $79.81. The 200-day EMA continues to rise and underpins the broader trend with primary support at $55.75. The Stochastic (14,5,5) slides to 21.20, nearing oversold and indicating fading downside momentum.
A recovery through the 50-day EMA at $79.81 would reassert the bullish bias and open scope for trend continuation. Failure to reclaim that barrier would keep pressure in place, while the rising 200-day EMA at $55.75 would be expected to absorb deeper pullbacks. A turn higher in the Stochastic from its depressed reading would strengthen the case for a rebound; a further drop into oversold could extend consolidation before traction emerges.
Source: FXstreet.com
