• Silver surges, bolstered by easing US producer prices, sparking interest in precious metals.
  • Though overbought, strong bullish momentum could target the next resistance at $28.74.
  • Support established at $28.00 and $27.54, key during potential pullbacks.

Silver price surges on Thursday after the release of prices paid by producers in the United States (US) showed that factory inflation continues to decelerate, contrasting Wednesday’s red-hot Consumer Price Index (CPI). Investors capitalized on that, as they took advantage of the dip in precious metals and lifted their prices near year-to-date peaks.

The XAG/USD trades at $28.45 and clocks minimal gains of 0.09% after ending Thursday’s session up by 1.94%.

XAG/USD Price Analysis: Technical outlook

The grey metal rally is set to extend after rallying after June 10, 2021, at a high of $28.28, which has opened the door for further upside. Silver gains momentum, although momentum oscillators suggest it's overbought. The Relative Strength Index (RSI), at 77.41, is still shy of reaching the 80 levels sought by traders as the overbought condition in a strong bullish trend.

With that said Silver’s next resistance would be the May 18 high at $28.74, followed by the psychological $29.00 figure. On the other hand, if sellers drag prices below the June 10, 2021, high, turned support, that will pave the way for further losses. The first support would be $28.00, followed by the April 10 low of $27.54, ahead of $27.00.  

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price 28.5
Today Daily Change 0.59
Today Daily Change % 2.11
Today daily open 27.91
 
Trends
Daily SMA20 25.77
Daily SMA50 24.13
Daily SMA100 23.86
Daily SMA200 23.55
 
Levels
Previous Daily High 28.53
Previous Daily Low 27.54
Previous Weekly High 27.5
Previous Weekly Low 24.75
Previous Monthly High 25.77
Previous Monthly Low 22.51
Daily Fibonacci 38.2% 27.91
Daily Fibonacci 61.8% 28.15
Daily Pivot Point S1 27.46
Daily Pivot Point S2 27
Daily Pivot Point S3 26.46
Daily Pivot Point R1 28.45
Daily Pivot Point R2 28.98
Daily Pivot Point R3 29.44

 

 

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