Silver attracts buyers for the third consecutive day, reaching a fresh weekly high on Wednesday. Despite this positive momentum, caution is warranted for bulls due to mixed technical indicators.
Currently trading around $28.45, just below the weekly high, Silver (XAG/USD) is showing a mild positive bias. The white metal is holding above the 23.6% Fibonacci retracement level and aiming to surpass the 200-period Simple Moving Average on the 4-hour chart. However, oscillators are just starting to show positive traction, with bullish confirmation still pending on the daily chart.
To support further gains, a sustained strength beyond the $29.00 mark is crucial. This breakthrough could trigger a bullish rally towards the $29.65 area, with potential to reach $30.00 and challenge the August monthly swing high at $30.20.
On the downside, immediate support is expected near $28.25, followed by $28.00. A break below could expose lower levels near $27.70 and eventually $26.00.
Silver 4-hour chart
Silver FAQs
- What is Silver?
- Silver is a precious metal used by investors for its value and as a hedge during high-inflation periods.
- What factors influence Silver prices?
- Geopolitical instability, interest rates, US Dollar strength, and demand from industries like electronics and solar energy.
- How does Silver relate to Gold?
- Silver prices often follow Gold’s movements, with the Gold/Silver ratio indicating relative valuation between the two metals.
Understanding the current trend in Silver prices and the factors influencing its movement can help investors make informed decisions about their portfolios. Whether considering Silver as a safe-haven asset, a commodity for industrial use, or a diversification strategy, staying informed about market dynamics is essential for financial success.