Silver Price Analysis: XAG/USD soars after Fed’s decision, eyes set on $26.00
|- Silver prices surge nearly 3%, buoyed by the Federal Reserve's decision to maintain current interest rates.
- US Dollar Index declines, supporting silver's upward momentum as investors digest the Fed's dovish stance.
- Technical indicators suggest potential for further gains, with XAG/USD traders targeting the $26.00 resistance level.
- Downside risks include a retracement towards the $25.00 support, and below.
Silver prices climbed on Wednesday after the US central bank, the Federal Reserve, held rates unchanged, delivering a “dovish” hold. Consequently, US Treasury yields edged down, and the Greenback remained pressured, as shown by the US Dollar Index (DXY), down 0.37% at 103.44. Therefore, XAG/USD trades at $25.61, up close to 3%.
XAG/USD Price Analysis: Technical outlook
Silver rallied sharply above the $25.50 rea, hitting a daily high at $25.63. A further upside is seen above that area, with grey metal traders eyeing $26.00 a troy ounce as the next key resistance level. Once those two levels are taken out, the next supply zone would be the April 18, 2022, high at $26.21, followed by the March 8, 2022, high at $26.94.
If sellers move in and drag prices below March 15’s high of $25.43, look for a drop toward $25.00. Once cleared, the next stop would be the December 22 high turned support at $24.60, followed by the $24.00 mark.
XAG/USD Price Action – Daily Chart
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