On Wednesday, silver’s impressive rally continued following a softer-than-expected Consumer Price Index (CPI) report in the United States (US), which caused US yields to plummet and provided a tailwind for the precious metal. The XAG/USD pair traded at $29.73, marking a substantial increase of more than 3.80% for the day.
XAG/USD Price Analysis: Technical Outlook
Silver’s price has surpassed key psychological levels such as $29.00 and $29.50, although it remains just below the year-to-date (YTD) high of $29.79, creating the potential for a double top pattern. Despite this, momentum appears to be in favor of buyers, as indicated by the Relative Strength Index (RSI).
For a bullish continuation, XAG/USD must successfully break above the YTD high and surpass the $30.00 psychological barrier. A breach of these levels would expose higher resistance targets, including the February 2013 high at $32.15 and the October 2012 high at $35.40.
Conversely, sellers would need to push silver’s price below the $29.00 level to initiate a pullback. In such a scenario, potential support levels include the May 18, 2021, high turned support at $28.75, followed by the $28.00 mark. Deeper losses could see silver finding key support around $27.00.
The technical analysis underscores the current bullish sentiment in the silver market, driven by macroeconomic factors and investor appetite for precious metals amid evolving market conditions. Traders will continue to monitor key resistance and support levels to assess potential price movements and investment opportunities in the silver market.
