Key Takeaways:
- Silver broke above key moving averages, supported by a bullish ‘double bottom’ formation.
- RSI signals strong momentum, with resistance levels at $30.00, $30.18, and $30.84.
- A drop below $29.00 could indicate a bearish shift, with crucial support at this level.
Silver Price Rally:
Silver’s price rallied sharply on Thursday, climbing over 4.30% to reach $29.90 after bouncing off daily lows of $28.54. The surge was fueled by overall weakness in the US Dollar, despite a slight increase in inflation. Poor jobs report data further supported Silver’s upward movement.
XAG/USD Price Forecast:
From a technical perspective, a bullish ‘double bottom’ pattern propelled Silver’s advance, allowing it to surpass key resistance levels at the 50-day moving average ($28.99) and the 100-DMA ($29.20). The Relative Strength Index (RSI) indicates strong momentum, suggesting an upward trajectory for XAG/USD.
Resistance and Support Levels:
Silver’s first resistance level is set at $30.00. A breakout above this point could lead to further gains, with targets at $30.18, $30.84, and $31.75. Conversely, a drop below $29.00 may signal a bearish reversal, with critical support at this level.
Silver FAQs:
Silver is a widely traded precious metal with historical value as a safe haven asset and a medium of exchange. Investors often turn to Silver to diversify their portfolios, hedge against inflation, or take advantage of its industrial uses in sectors like electronics and solar energy. The metal’s price movements are influenced by various factors, including geopolitical dynamics, interest rates, US Dollar performance, and supply-demand equations.
Gold/Silver Ratio:
Silver prices typically follow Gold’s movements, with the Gold/Silver ratio used to assess the relative value between the two metals. A high ratio may suggest that Silver is undervalued, while a low ratio could indicate undervaluation of Gold compared to Silver. Both metals share similar safe haven attributes and are impacted by similar market forces, making them closely correlated assets.