Silver prices rallied sharply for the second consecutive day, surpassing the $30.00 mark on Thursday, driven by higher US Treasury bond yields and a stronger US Dollar. The grey metal is currently trading at $30.68, marking a gain of more than 3%.
XAG/USD Price Analysis: Technical Outlook
Silver’s bullish momentum has been evident, breaking out of a six-day consolidation phase between $28.60 and $29.80 to surpass the key $30.00 level.
The Relative Strength Index (RSI) signaled a shift in favor of buyers as it hovered around the 50-neutral line, indicating strong buying interest.
Looking ahead, if XAG/USD continues its uptrend, the next resistance lies at the June 7 high of $31.54. A successful breach of this level could pave the way towards $32.00, followed by a challenge of the year-to-date (YTD) high at $32.51.
Conversely, a downside move below the 50-day moving average (DMA) at $29.09 would expose support at $29.00. Further declines could target the month-to-date (MTD) low of $28.66, with potential downside extending towards the 100-DMA at $26.60.
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