As seen on the XAG/USD chart, the price of silver fell to the $70 level and briefly pierced it, marking the lowest level since early February.
Although geopolitical tensions typically support demand for safe-haven assets, silver is under pressure from expectations of a fresh inflationary surge driven by rising energy prices (as noted earlier, Brent crude has risen above $110).
Yesterday’s “hawkish” comments from Federal Reserve Chair Jerome Powell also played a role. The Fed maintained interest rates, signalling that any future cuts would only occur if inflation stabilises.
Technical Analysis of XAG/USD
On 4 March, analysing the XAG/USD chart, we:
- → drew a blue ascending channel;
- → suggested that price action around the channel’s median could provide key signals.
Over time, the median proved to be a strong resistance. By 10 March, point C had formed, after which:
- → on 13 March, the blue channel was breached;
- → on 17 March, price showed an intraday bearish reversal from the breakout level.
Trading volume analysis indicates that the market remains under considerable pressure.
Although the long lower shadow on the candle near the psychological $70 mark indicates some buyer activity, the overall picture remains bearish. A red descending channel can be drawn on the silver price chart, with its median potentially acting as resistance in the near term, thereby confirming the validity of the constructed channel.
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