Gold and silver struggled late last week, hammered as bond yields soared and the US dollar rebounded, undermining demand for USD-denominated assets offering zero yields, such as precious metals. But it wasn't just traditional drivers that drove the unwind, with both metals behaving more like riskier asset classes than havens, sliding alongside equities as volatility picked up.
Silver Price Forecast: XAG/USD plunges, clearing key levels below $70
The dot plot delivered the bearish scenario on March 18. Silver fell.
Silver continues to face a lot of headwinds as the yield situation is working against the bulls. The consolidation area is being seriously threatened at this point, as the 10-year yield continues to strengthen.
XAU/USD, XAG/USD Outlook –Metals Reversal: Gold and Silver face gigantic outflows as the US-Iran conflict drives oil-based inflation fears. With central banks shifting from rate cuts to hikes, traditional safe-haven demand has failed to materialize.
Silver was hit hard by rising US yields, with $70 acting as the key level that must hold to prevent a deeper slide toward the 200-day EMA.
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Silver plunges to test support early on Thursday as yields continue to rise in the US. This could end up being a big issue for this market.
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.