Key Takeaways:
- Silver has attracted buyers for the third consecutive day, reaching a fresh weekly high
- Technical indicators suggest caution for bullish traders, with resistance near the $29.00 level
- Strong sustained strength above $29.00 could lead to further gains for Silver
Silver Showing Mild Positive Bias
Silver (XAG/USD) has been trading with a mild positive bias for the third consecutive day, currently hovering around the $28.45 region. This comes after touching a weekly high during the Asian session.
Technical Analysis
From a technical perspective, Silver is holding above the 23.6% Fibonacci retracement level and aiming to move beyond the 200-period Simple Moving Average on the 4-hour chart. While oscillators are starting to show positive traction, a strong bullish bias is yet to be confirmed on the daily chart. Resistance is expected around the $28.95-$29.00 area, which includes the 50% Fibonacci level and the 100-period SMA on the 4-hour chart.
Potential for Further Gains
To support prospects for additional gains, Silver needs sustained strength above the key $29.00 level. This could trigger a move towards resistance near $29.25 and eventually lift Silver towards the $30.00 psychological mark. Bulls might target the August monthly high at around $30.20.
Downside Risks
On the downside, support is seen at around $28.25, with further downside potential towards $28.00. Breaking below this level could expose Silver to additional downside towards $27.70 and eventually the August monthly low near $26.40.
Factors Affecting Silver Prices
Silver prices are influenced by various factors including geopolitical instability, US Dollar movements, and industrial demand. It is widely used in industries like electronics and solar energy, impacting its price. Silver tends to follow Gold’s movements, with the Gold/Silver ratio providing insights into their relative valuation.
Conclusion
Silver has shown strength in recent days, but caution is warranted as it faces resistance near key levels. Sustained strength above $29.00 could pave the way for further gains, while a break below key support levels might expose Silver to downside risks.
Further Discussion
Do you think Silver will continue its positive bias in the coming days? How do you see geopolitical factors impacting Silver prices in the near future?
Silver FAQs
Silver is a precious metal highly traded among investors. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets. Silver prices can move due to a wide range of factors such as geopolitical instability, fears of a deep recession, or movements in the US Dollar. Silver is also widely used in industry, particularly in sectors such as electronics or solar energy.