Silver price climbs to $28.21, reclaiming the crucial $28.00 level following the release of US JOLTS data indicating potential rate cuts. Despite a bullish RSI, momentum remains flat with resistance at the 100-DMA of $29.14. Sellers will need to push below $28.00 to test support at $27.71 and the 200-DMA at $26.59.
On Wednesday, the silver price made a late recovery, gaining over 0.74% and trading at $28.21 at the time of writing. The latest US JOLTS report suggested a cooling labor market, increasing the likelihood of a 50-basis point interest rate cut at the upcoming Fed meeting in two weeks. This news caused US yields to drop and weaken the Greenback, allowing silver to surpass the $28.00 mark.
Silver Price Forecast: Technical Analysis
XAG/USD is currently hovering around $28.00, but a daily close above this level has been achieved. The RSI is bullish, but the almost horizontal slope indicates a lack of control from either buyers or sellers. Key technical indicators suggest a potential test of lower prices in the short term, with sellers needing to break key support levels to move further down.
To continue downward momentum, sellers must push XAG/USD below $28.00, followed by the $27.71 level and the August 14 swing low of $27.18. Further weakness could lead to a drop towards the 200-DMA at $26.59. Conversely, buyers need to reclaim the 100-DMA at $29.14 to regain control.
XAG/USD Price Action – Daily Chart
Silver FAQs
Silver is a precious metal often traded by investors for its value and as a potential hedge during economic uncertainty. Factors such as geopolitical instability, interest rates, and the strength of the US Dollar can influence silver prices. The metal is widely used in industries like electronics and solar energy, impacting its demand and pricing. Silver prices tend to follow gold trends, with the Gold/Silver ratio providing insight into their relative valuation.