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
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.
