Silver Price Analysis: XAG/USD reaches key support area at $18.10
- Silver prices accelerate their downtrend to approach the support area at $18.10.
- Precious metals lose ground amid US dollar strength.
- Below $17.60 XAG/USD will be exploring two-year lows.
Silver futures have accelerated their downtrend on Friday, weighed by the overall US dollar recovery. XAG USD has lost more than 4% so far today and is on track to complete a six-day sell-off.
Approaching mid-term lows at the $18.00 area
Precious metals are on the back foot on Friday, with the US dollar appreciating amid hopes that the Federal Reserve will announce the fourth consecutive 75 bp rate hike in November. US CPI figures released on Monday confirmed the resilient inflation pressures paving the path for the Fed to keep ramping up interest rates.
Furthermore, increasing fears of a global recession, on the back of a set of downbeat macroeconomic data is also pushing wary investors towards the safe-haven greenback.
Against this backdrop, silver prices have plummeted from prices beyond $21 in early October to the lower range of $18 on Friday, entering a narrow area between $18.10 and $17.60, which contains July, August, and September’s lows.
With technical indicators highlighting the strong bearish momentum, a successful breach of $17.60 might take the pair to explore June 2020 lows at the $17.00 area and Apr 14, 2020 high at S15.85.
On the upside immediate the pair should breach the 50 and 100-days SMAs, at $19.25 and $19.85 respectively to regain bullish traction and test the $230.00 psychological level.