Silver (XAG/USD) experiences a slight decline on Thursday but remains above the crucial $29.20 confluence level, indicating bullish momentum in the market. Despite some selling pressure in the Asian session, the white metal is holding steady above the 50-day Simple Moving Average (SMA) and is currently trading around the mid-$29.00s, down 0.40% for the day.
The $29.20 region, where the 50-day SMA converges with the 50% Fibonacci retracement level of the July-August decline, serves as a key support level for XAG/USD. A break below this level could trigger further selling pressure, potentially pushing the price towards the $28.55 region, followed by the $28.00 mark and eventually the $27.25 level.
On the upside, a sustained move above the $30.00 mark is needed to confirm a bullish trend and pave the way for a rally towards the $30.55-$30.60 area. Further upside targets include the $31.00 mark, $31.30-$31.40 supply zone, and potentially retesting the YTD peak at $32.50.
Technical indicators on the daily chart suggest that there is room for dip-buying at lower levels, indicating a potential bullish reversal in the near term. However, traders should exercise caution and wait for a clear break above $30.00 before considering long positions.
Silver daily chart
Silver FAQs
- What is Silver? – Silver is a precious metal used by investors for its intrinsic value and as a hedge against inflation. It can be traded physically or through financial instruments like ETFs.
- What factors influence Silver prices? – Silver prices are impacted by geopolitical events, interest rates, US Dollar strength, investment demand, mining supply, and industrial usage.
- How is Silver used in industry? – Silver is widely used in electronics and solar energy industries due to its high electric conductivity. Demand from these sectors can affect Silver prices.
- How does Silver relate to Gold? – Silver prices often follow Gold’s movements, and the Gold/Silver ratio can indicate relative valuations between the two metals.
Overall, the technical analysis suggests a bullish outlook for Silver prices, with key levels to watch for potential breakouts. Traders should monitor the $29.20 support and $30.00 resistance levels for confirmation of the next trend direction. Keeping an eye on geopolitical events and economic indicators can also help in making informed trading decisions in the Silver market.