Silver Price Analysis: XAG/USD remains bullish, though faces strong resistance at around $24.90
|- Silver prices climb to a new three-month high at around the $ 24.80 area.
- US Treasury bond yields pullback, driving the grey-metal price higher.
- XAG/USD is bullish above $24.50, otherwise, expect a pullback below $24.00.
Silver price encounters solid resistance at around $24.90, though it remains trading in the green, posting solid gains of more than 1.30% on Monday due to a retracement of US Treasury bond yields, weakening the buck. That, alongside a scarce economic calendar, keeps investors focused on the release of the Personal Consumption Expenditures (PCE) Price Index later in the week. The XAG/USD is trading at $23.65 after hitting a low of $24.27.
The XAG/USD daily chart portrays the grey metal reached a new three-month high at $24.87, but buyers failure to test the $25.00 figure sponsored the current pullback toward $24.65, above the Bollinger-band’s top standard deviation. Further upside is seen above the August 30 high at $25.00, immediately followed by the next supply zone at $25.26, the July 20 high, followed by the May 10 swing high at $25.91.
On the bearish scenario, if Silver’s price drops below the psychological $24.50 area, a test of the 200-day moving average (DMA) at $23.34 is on the cards. The next key demand areas would be the 20-DMA at $23.22, followed by the 50-DMA at $22.79.
XAG/USD Price Analysis – Daily Chart
XAG/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.