Silver (XAG/USD) shows signs of recovery after hitting a two-month low on Thursday, attracting some buyers in the Asian session. However, technical indicators suggest the possibility of fresh selling at higher levels. To shift the negative bias, Silver needs to surpass the 100-day SMA support breakpoint.
Currently trading around $27.45, Silver struggles to break above $28.00 and is on track for a third consecutive weekly loss. The recent breakdown below the 100-day SMA support at $28.60 signals bearish momentum, supported by negative oscillators on the daily chart.
If Silver manages to clear the $28.55-$28.60 zone, it could trigger a short-covering rally towards $29.00, $29.40, and potentially $30.00. On the downside, breaking below $27.45 could lead to further losses towards $27.00 and the 200-day SMA support at $26.00.
Silver Daily Chart
Silver FAQs
Silver is a precious metal widely traded by investors for its store of value and potential as a hedge during high-inflation periods. Factors affecting Silver prices include geopolitical instability, interest rates, US Dollar strength, investment demand, and industrial usage.
Investors can diversify their portfolios with Silver through physical purchases or ETFs that track its price. The Gold/Silver ratio can help determine the relative valuation between the two metals, with a high ratio indicating potential undervaluation of Silver.
Understanding these factors can help investors make informed decisions about trading Silver and its impact on their financial portfolios.