Silver prices are on the rise, currently trading at $30.30 and recovering from near-weekly lows of $30.00. The increase in prices can be attributed to softer-than-expected US Durable Goods data and an improvement in consumer sentiment in the United States. Despite the recent losses, Silver prices are showing strong buyer momentum, as indicated by the Relative Strength Index (RSI) remaining bullish, even after exiting overbought conditions.
Looking at the technical outlook for XAG/USD, the grey metal is currently in an upward bias, with the potential for further gains above the $30.00 level. The RSI is pointing upwards, suggesting that buyers remain in control and are pushing the price higher. The first resistance level for XAG/USD is at the May 23 high of $30.97, followed by $31.50, $32.00, and the year-to-date high of $32.51 reached on May 20.
On the other hand, if there is a pullback in Silver prices, the first support level is at the psychological level of $30.00. Further support levels include the April 12 high turned support at $29.79, $29.00, the May 18 high at $28.74, and the June 10 high at $28.28. The key takeaway from the technical analysis is that Silver prices are likely to continue their upward momentum, with the potential for further gains in the near term.
Overall, the outlook for Silver prices remains positive, with strong buyer momentum supporting the recent uptrend. The impact of softer US Durable Goods data and improved consumer sentiment in the US is reflected in the current price movement. Traders and investors should keep an eye on key resistance and support levels to gauge the direction of Silver prices in the coming days. With the RSI remaining bullish and pointing upwards, there is a strong possibility of further gains in the XAG/USD pair.
