Silver Price Analysis: XAG/USD collapses below $30.00 as double top emerges

• Silver breaches key support levels amid ‘double top’ chart pattern confirmation.
• XAG/USD fall amid lower US T-bond yields as traders book profits.
• XAG/USD double top pattern objective would be $27.80.

Silver prices sank sharply on Tuesday amid falling US Treasury bond yields and a firm US dollar. The grey metal dropped more than 4% at the time of writing and trades at $29.48 after the XAG/USD hit a daily high of $30.88.

XAG/USD Price Analysis: Technical outlook

The XAG/USD fell below the latest cycle high seen on April 12 at $29.79, opening the door for deeper losses. Traders had witnessed the confirmation of a ‘double top’ chart pattern, opening the door to test key support levels on the way south.

The first one would be the psychological $29.00. A breach of the latter will expose previous key resistance levels that turned support, like the May 18, 2021, high of $28.74, followed by the June 10, 2021, high of $28.34. Up next would be the ‘double top’ objective at $27.80.

XAG/USD Price Action – Daily Chart