Silver prices continued their upward trajectory on Thursday, rising more than 1.70% and trading at $68.18 at the time of reporting, despite a recovery in US yields following the US Treasury bond buyback announcement [1]. The technical outlook remains bullish for XAG/USD, with the price approaching the 100-day Simple Moving Average (SMA) at $68.51. The Relative Strength Index (RSI) is above its 50-neutral level and nearing overbought territory, further supporting the bullish momentum [1].
To solidify the bullish trend, XAG/USD needs to reclaim the 100-day SMA. If this level is surpassed, the next resistance is at $70.00, followed by the 200-day SMA at $71.97. A break above these levels could see silver targeting the psychologically significant $75.00 mark. On the downside, immediate support is at the day's low of $65.64, with further support at the August 19 swing low of $62.19 and the 50-day SMA at $61.35 [1].
The article also highlights that silver's price movements are influenced by factors such as US Dollar strength, interest rates, geopolitical instability, and industrial demand, particularly from the US, China, and India. However, the current rally is primarily attributed to technical factors and the recent US Treasury bond buyback announcement [1].
CONCLUSION
Silver's rally remains intact, with bullish technical indicators and key resistance levels in focus. The market is watching whether XAG/USD can reclaim the 100-day SMA, which could open the path to further gains. Support levels are well-defined, providing a clear framework for traders amid ongoing market volatility.