Key Takeaways:
- Silver’s price nears key support levels at the 50 and 100-day moving averages between $29.17 and $29.13.
- RSI is neutral, pointing to potential downside if a clear direction isn’t established.
- If Silver falls below $29.00, it may target the August 12 high at $28.03, with support at the August 14 low of $27.18.
- An upside move above $30.00 could lead to price targets at the June 21 high of $30.84 and July 11 peak of $31.75.
Silver Prices Dip Below $30 Amid Technical Challenges
Silver prices recently dipped towards a critical technical level as bulls struggled to maintain the metal’s value above the $30.00 mark. As the XAG/USD pair closed with a 2.84% loss on Wednesday, it currently trades around $29.10 in Thursday’s Asian session.
Technical Outlook
The uptrend in Silver’s price remains intact, but after a rally from $26.45 to $30.18, the metal has retreated to the 50 and 100-day moving averages at $29.17-$29.13. The Relative Strength Index (RSI) indicates a neutral momentum, suggesting a lack of dominance by either buyers or sellers.
If the XAG/USD drops below $29.00, it may test the support level at $28.03, followed by a potential challenge of the August 14 low at $27.18. Conversely, a move above $30.00 could lead to targets at $30.84 and $31.75, representing previous highs in June and July.
Silver FAQs
Silver is a valuable metal often traded by investors as a means of diversifying portfolios or hedging against inflation. Factors such as geopolitical tensions, interest rates, US Dollar fluctuations, and demand from industrial sectors can influence Silver prices. The metal’s conductivity and use in various industries, as well as its correlation with Gold, are key drivers of its market movements. Investors can acquire Silver through physical purchases or through financial instruments like ETFs.