The Price of Silver (XAG/USD) is Falling for the Second Consecutive Week
Following a surge in the price of silver close to the important psychological level of $30 per ounce on April 12, bearish momentum is now evident - concluding the week may mark the second consecutive week of decline for XAG/USD.
The decline in demand for silver could be linked to the decrease in gold prices.
Conversely, gold is losing its appeal due to:
easing geopolitical tensions in the Middle East;
gold's lack of yield, which is deemed unattractive in a high interest rate environment that may persist due to the Federal Reserve's policy - investors are given reason to favour low-risk bonds in their portfolios.
Technical analysis of the XAG/USD chart today shows that:
the price of silver is descending towards the breakout area of significant resistance (shown by the red line) - this line could now act as support;
support can also be expected from the median line of the ascending channel (shown in blue).
Note that the RSI indicator on the daily chart is below the 50.0 level. This makes it reasonable to expect bulls to attempt to resume the upward trend from the mentioned support levels around $25.75 per ounce of silver.
Text source: Forex Trading Blog
