Silver (XAG/USD) continues to show a positive bias for the second consecutive day, moving away from the lowest level since May 9. Currently trading above $28.00, the white metal is up over 0.50% for the day. However, caution is advised due to the technical setup suggesting a potential downside.
Last week, Silver broke through key support levels, triggering bearish sentiment among traders. The daily chart indicators remain in negative territory, indicating a downward trend. Any upward movement is likely to face resistance near the $28.55-$28.60 zone, with the 100-day SMA acting as a crucial support level. Breaking above this zone could lead to a short-covering rally towards $29.00 and $29.45 levels.
On the downside, the $27.45 support level is critical, with further selling pressure potentially pushing the price towards $27.00 and below. The 200-day SMA support near $26.00 is a significant level to watch for a potential reversal.
Silver daily chart
Silver FAQs
Silver is a precious metal traded by investors for its store of value and exchange medium. It can be bought physically or traded through ETFs for diversification and hedging purposes. Factors affecting Silver prices include geopolitical instability, interest rates, USD performance, investment demand, supply, and industrial usage.
Overall, Silver’s price movements closely follow Gold’s, with the Gold/Silver ratio providing insights into their relative valuations. Understanding these factors can help investors make informed decisions in the volatile precious metals market.