Silver Price Analysis: XAG/USD stays firm above $24.00 on weak US Dollar
- Silver posts gains of more than 6% in the last couple of days, sponsored by a dovish Fed.
- US Treasury bond yields plunge continued for the second straight day.
- XAG/USD is upward biased in the near term but must reclaim $25.00 to challenge year-to-date (YTD) highs.
Silver price climbs and reclaims the $24.00 figure after extending its gains for the second consecutive day, following the Federal Reserve’s dovish pivot on Wednesday. The plunge in US Treasury bond yields plunge, favors the non-yielding metal, which is rising to a six day high at around $24.21, gaining more than 1.50%.
The grey’s metal is bullishly biased in the near term, as shown by the daily chart, though it’s reading within the mid-range of the latest upswing from $21.88-$$25.91, with a long road ahead to test the most recent cycle high. On its way north, key resistance levels exist to conquer, like the $24.50 psychological level, followed by the August 30 high at $25.00, before reaching $25.91.
On the other hand, if XAG/USD achieves a daily close below the $24.00 mark, that could pave the way for a pullback toward the 200-day moving average (DMA) previous resistance turned support at $23.55, immediately followed by the 50-DMA and the 100-DMA confluence at around $23.24/$23.19, before diving to $23.00.
XAG/USD Price Analysis – Daily Chart
XAG/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
