Silver Price Analysis: XAG/USD remains bullish, though faces strong resistance at around $24.90
- Silver prices climb to a new three-month high at around the $ 24.80 area.
- US Treasury bond yields pullback, driving the grey-metal price higher.
- XAG/USD is bullish above $24.50, otherwise, expect a pullback below $24.00.
Silver price encounters solid resistance at around $24.90, though it remains trading in the green, posting solid gains of more than 1.30% on Monday due to a retracement of US Treasury bond yields, weakening the buck. That, alongside a scarce economic calendar, keeps investors focused on the release of the Personal Consumption Expenditures (PCE) Price Index later in the week. The XAG/USD is trading at $23.65 after hitting a low of $24.27.
The XAG/USD daily chart portrays the grey metal reached a new three-month high at $24.87, but buyers failure to test the $25.00 figure sponsored the current pullback toward $24.65, above the Bollinger-band’s top standard deviation. Further upside is seen above the August 30 high at $25.00, immediately followed by the next supply zone at $25.26, the July 20 high, followed by the May 10 swing high at $25.91.
On the bearish scenario, if Silver’s price drops below the psychological $24.50 area, a test of the 200-day moving average (DMA) at $23.34 is on the cards. The next key demand areas would be the 20-DMA at $23.22, followed by the 50-DMA at $22.79.
XAG/USD Price Analysis – Daily Chart
XAG/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
