Silver Price Analysis: XAG/USD eyes 26.00 and the 55-day SMA
|- Silver is rising by more than 2% on Thursday, trading at the highest in almost a month.
- Outlook points to further gains for a test of $26.00 and the 55-day SMA.
Silver and gold are rising sharply on Thursday, boosted by a decline in US yield and higher equity prices. The risk-on mood across financial markets, accompanied by lower yields, triggered a sharp rally in metal, only limited by a mixed performance on the US dollar. The DXY trades flat around 91.60/70.
The break above $25.60 (previous monthly high) gave XAG/USD another boost to the upside. The price peaked at $25.98, and it remains near the top with the positive tone intact. The next area to break is the $26.00 zone.
A consolidation above $26.00 would clear the way to further gains targeting the 55-day simple moving average (SMA) at $26.20. The mentioned average has been relevant over the last months. A daily close above well above would improve the outlook for the bulls. A failure around that area would suggest difficulties ahead for silver.
The area at $25.60 is now the immediate support. A decline below $25.20 would increase the bearish pressure.
XAG/USD daily chart
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