Silver prices advanced by approximately 2.45% on Thursday, with XAG/USD trading at $66.90 after reaching an intraday high of $67.48. This rally was attributed to dovish remarks from Federal Reserve Governor Waller, which led to a decline in both the US Dollar and US Treasury yields, providing a supportive backdrop for the precious metal [1].
From a technical perspective, silver remains neutral to downward biased in the broader trend, as the market structure continues to show lower highs and lower lows, indicating that sellers maintain control. However, short-term momentum has shifted in favor of the bulls, as evidenced by the Relative Strength Index (RSI) rebounding from its neutral 50 level [1].
For silver to resume its uptrend, it must break above the 100-day Simple Moving Average (SMA) at $67.66. If this level is surpassed, the next resistance points are the August 28 swing high at $71.12 and the 200-day SMA at $72.78. Further gains could see buyers targeting the May 25 high at $78.83 and potentially the $80.00 mark. Conversely, failure to breach the 100-day SMA could see sellers push prices down toward the September 2 swing low of $63.32, with further downside targets at the 50-day SMA of $61.85 and then $60.00 [1].
The article also notes that silver's price is influenced by factors such as US Dollar movements, interest rates, industrial demand, and geopolitical instability. Lower interest rates and a weaker dollar typically support silver prices, while industrial demand, especially from electronics and solar energy sectors, can also drive price changes [1].
CONCLUSION
Silver's recent 2.45% rally was driven by dovish Fed commentary, which weakened the US Dollar and Treasury yields. The market is now watching whether silver can break above the 100-day SMA at $67.66, which could open the door to further gains. However, failure to do so may result in renewed selling pressure and lower prices.