Silver (XAG/USD) prices reclaimed the $60.00 mark for the second consecutive day on Friday, extending weekly gains to over 5.50% and trading at $62.42. The white metal reached an eight-day high of $62.89, driven by broader US Dollar weakness, which has supported the rally in silver prices [1].
Technical analysis indicates that silver's rebound faces significant resistance near the 200-day Simple Moving Average (SMA) at $69.97. The Relative Strength Index (RSI) has exited oversold territory and is moving towards the 43 mark, suggesting a potential shift to bullish momentum. If XAG/USD surpasses the $65.00 level, it could pave the way for a move towards the 200-day SMA, with further resistance at the 50-day SMA ($71.32) and the 100-day SMA ($74.96) [1].
On the downside, a continuation of the bearish trend would require silver to break below the day's low of $60.92, with subsequent support at the $60.00 level and the June 30 swing low of $56.61 [1].
The article also highlights that silver prices are influenced by factors such as US Dollar movements, industrial demand, and macroeconomic conditions. The current rally is attributed to US Dollar weakness, which typically benefits yieldless assets like silver [1].
CONCLUSION
Silver's strong performance above $60, supported by US Dollar weakness, has led to notable weekly gains and a test of key resistance levels. Technical indicators suggest potential for further upside if $65 is breached, while downside risks remain if support levels are broken. Market participants are closely watching the $65 threshold for signs of a sustained breakout.