Silver Price Analysis: XAG/USD soars above key resistance as buyers’ eye $29.00

• Silver rallies, gaining nearly $1.00 to pass $28.00, fueled by falling US Treasury yields and a weaker dollar.
• Bullish technicals as RSI exceeds 60, indicating room for more upward movement.
• Resistance levels at $28.49 and $29.00, targeting year-to-date high of $29.79; support at $28.00 and $27.70.

Silver prices rallied sharply as US Treasury yields tumbled, and the Greenback weakened as major central banks opened the door to ease policy. At the time of writing, XAG-USD trades at $28.29, up by more than 3.50%.

XAG/USD Price Analysis: Technical outlook

After consolidating below the latest cycle high of $27.733 witnessed on April 26, the grey metal exploded with close to $1.00 gains, clearing the $28.00 threshold, with bulls eyeing the $28.50 mark.

As wrote on May 8, “The Relative Strength Index (RSI) is in bullish territory, indicating that momentum favors bulls,” This means, the precious metal could be headed for further gains, as the RSI just punched above the 60.00 threshold with enough room before turning overbought.

If buyers reclaim the 23.6% Fib retracement at $28.49, that could pave the way to test $29.00. Once cleared, the next stop would be the year-to-date (YTD) high of $29.79, followed by the $30.00 figure.

On the flip side, if sellers drag Silver below $28.00, the immediate support would be the 38.2% Fib retracement at $27.70, followed by the 50% Fib retracement at $27.05. Once those levels are cleared, up next is the psychological $27.00 figure.

XAG/USD Price Action – Daily Chart