Silver Price Analysis: XAG/USD jumps to $25.80, highest in almost two weeks
- Silver rises by more than 3% on Thursday, on risk appetite, weaker dollar.
- XAG/USD back above the 20-day simple moving average.
Silver is sharply higher on Thursday, extending the rally that started on Tuesday from $24.47, the lowest since April. During the last sessions, it gained more than 5%. The key trigger of the reversal was a correction, then boosted by an improvement in risk sentiment.
What started as a correction amid profit-taking, turned into a sharp reversal. In a few sessions, silver erased most of the month’s losses. On Thursday, XAG/USD peaked at $25.79, the highest level since July 16.
Also, gold is also up considerably on Thursday, 1.5%. The improvement in risk sentiment also contributed to the rally in commodities. At the same time, the US dollar is falling across the board. The DXY drops 0.60%, losing ground for the fourth consecutive day, at the lowest in a month.
XAG/USD recovered the 20-day moving average and is about to test the 200-day SMA that stands at $25.90. A recovery above $26.00 could clear the way to more gains over the short term. The positive tone will likely remain in place while above $25.40.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
