Silver Price Analysis: XAG/USD gains marginally, clings above $28.00
Source Fxstreet
- Silver prices climb due to a weaker US Dollar and lower US yields.
- Traders await key inflation data from the US and Fed Chair Powell's speech.
- Momentum favors bulls, but a daily close below $28.00 and Silver could dip toward $27.00, short-term.
Silver's price advanced 0.28% on Monday, courtesy of falling yields in US Treasuries and a softer US Dollar. A scarce economic schedule in the US keeps investors bracing for releasing the Consumer Price Index (CPI) on May 15, but first, traders will deal with Fed Chair Jerome Powell's speech on Tuesday. The XAG/USD trades at $28.22 after hitting a low of $27.97.
XAG/USD Price Analysis: Technical outlook
After peaking at around $28.74 last week, Silver dipped toward the $28.00 figure before reversing its course and shifting positively during the day. However, the grey metal remains below the June 10, 2021, high of $28.28, which could open the door for a pullback.
Momentum, as measured by the Relative Strength Index (RSI), favors the XAG/USD bulls, but a daily close below $28.00 could pave the way for further losses.
In that outcome, the XAG/USD first support would be the 38.2% Fib retracement at $27.70, followed by April’s 15 low of $27.59. Once cleared, the next stop would be the 50% Fib retracement at $27.06.
On the other hand, if Silver stays above $28.00, that could open the door for a bullish continuation. The first resistance would be May 10, high at $28.76. Once cleared, key resistance levels surface, like the $29.00 figure, followed by the year-to-date (YTD) high of $29.79.
XAG/USD Price Action – Daily Chart
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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