Silver (XAG/USD) is showing some positive traction on Wednesday, with a slight increase near the $27.00 mark. However, the lack of follow-through buying suggests that fresh selling could emerge at higher levels. The recent breakdown through the 100-day Simple Moving Average (SMA) and failure to surpass the $29.00 mark last week indicate a bearish bias in the market.
Currently, Silver faces resistance near the $27.50 horizontal zone, with potential for a short-covering move pushing it beyond $28.00. If this level is breached, the next hurdle lies at $28.20. However, the upside momentum may be limited near the 100-day SMA support breakpoint around $28.70. To shift the bias in favor of bulls, Silver needs to break above the $29.00 round figure.
On the downside, immediate support is seen around $26.60-$26.50, followed by the May monthly swing low near $26.00. Further support lies at the $25.60 horizontal zone, with a potential drop to $25.00 and $24.40-$24.30 support levels if the negative bias persists.
Factors such as geopolitical instability, interest rates, US Dollar strength, and industrial demand can influence Silver prices. Investors may consider diversifying their portfolio with Silver as a hedge during high-inflation periods. Understanding the dynamics of the Silver market and its relationship with Gold can help investors make informed decisions.
Silver daily chart
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Silver is a precious metal with historical significance, traded among investors for its intrinsic value and potential hedging properties. Factors such as geopolitical events, interest rates, and industrial demand can impact Silver prices. Understanding these factors can help investors navigate the volatility of the Silver market and make informed investment decisions.