Silver (XAG/USD) is showing signs of consolidation after recovering from a multi-week low, trading around $28.80 in the Asian session. Bulls need to be cautious as the metal failed near the 100-period SMA on the 4-hour chart. A sustained move above the $29.00 mark is crucial for further gains.
Traders are waiting for the US Nonfarm Payrolls (NFP) report before making significant bets. The failure to break above $29.00 and neutral oscillators on the daily chart indicate the need for caution. Bulls should wait for a confirmed move above $29.00 to support the recent bounce from $27.70.
If XAG/USD breaks above $29.00, it could target $29.65 and then $30.00. A move beyond $30.20 would trigger further bullish momentum towards $30.80 and potentially $31.00. On the downside, support is at $28.50, followed by $28.00 and $27.70.
Silver 4-hour chart
Silver FAQs
Silver is a precious metal that investors trade for its store of value and as a hedge during high-inflation periods. Factors affecting Silver prices include geopolitical instability, interest rates, USD performance, investment demand, mining supply, and industrial usage. Silver prices often follow Gold’s trends, with the Gold/Silver ratio indicating relative valuation between the two metals.