Silver tracked the sell-off in gold price after Fed’s hawkish turn.
XAG/USD battles 50-DMA as bears gather strength for subsequent downswing.
RSI has turned flat but stays bearish, keeping sellers hopeful.
Silver price (XAG/USD) tumbled in tandem with gold price on Wednesday, because the US Federal Reserve System (Fed) surprised markets with hawkish signals, suggesting sooner-than-expected rate hikes and tapering prospects.
The US returns on the market jumped and drove the US dollar higher, weighing on the non-yielding bullion prices. Further, China’s announcement that their measures to curb the surge in commodity prices are achieving results also still keep the bearish undertone intact in silver.
Looking at it technically, the bearing metal seems to possess found rejection above the 50-Daily Moving Average (DMA) at $27.02 on its road to recovery from Wednesday’s crash to multi-week lows of $26.61.
That said, the downside remains open for a test of the critical 100-DMA support at $26.64, around where the previous low coincides.