Silver prices (XAG/USD) climbed significantly late in the North American session, driven by falling US Treasury yields and a softer US Dollar. Despite higher-than-expected US inflation figures, the non-yielding metal advanced, trading at $28.57 with a gain of 1.32%.
Technical Outlook: XAG/USD Price Analysis
Over the past three days, silver has fluctuated within a range of $28.00 to $28.80 after experiencing substantial gains since May 2. This upward movement has propelled the metal’s price from approximately $26.02 to its current levels.
The technical outlook for XAG/USD remains bullish, though the price is nearing the formation of a ‘double top’ pattern. Buyer momentum is strong, indicated by the Relative Strength Index (RSI) being in bullish territory.
For a bullish continuation, buyers need to push past the psychological barrier at $29.00. Clearing this level would target the year-to-date (YTD) high of $29.79, followed by the significant $30.00 mark.
Conversely, if sellers regain control and push prices below $28.00, further declines could follow. The initial support zone lies at the 38.2% Fibonacci retracement level of $27.70. A break below this level would expose the 50% Fibonacci retracement at $27.06.
