Silver Price Analysis: XAG/USD strengthens after breaking above $26.00
- Silver jumps to $26.29, the highest since Friday, after breaking $26.00.
- During the American session, the recovery in metals lost strength.
Silver (XAG/USD) broke above $26.00 and climbed to $26.29, reaching the highest level since last Friday. The move higher took place amid a rally in metals and also boosted by technical factors. However, during the last hours, metals lost momentum and pulled back, trimming daily gains.
The US dollar rose modestly during the American session, erasing a small part of its daily gains against most currencies. The DXY rebounded at 91.50 and climbed to 91.70. At the same time, stocks turned to the downside in Wall Street, and US yields rose modestly. The 10-year yield still remains under 1.50%.
As of writing, XAG/USD is hovering around $26.10, up 1.25% for the day. The recovery lost momentum, but it could rise further if it manages to hold above $26.00, targeting the $26.50 area.
A decline back under $26.00 would weaken the short-term outlook, putting the price back in the $25.70/$26.00 range. A consolidation under $25.70 would increase the bearish pressure.
Silver 4-hour chart
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.
