- Silver prices rise due to the weakness of the US dollar and lower yields in the US.
- Traders await key US inflation data and Fed Chair Jerome Powell's speech.
- Momentum or momentum favors the bulls, but a daily close below $28.00 and Silver could fall towards $27.00, in the short term.
The price of Silver advanced 0.28% on Monday, courtesy of falling yields on US Treasuries and a softer US Dollar. A scant economic calendar in the US keeps investors attentive to the publication of the Consumer Price Index (CPI) on May 15, but before that, operators will deal with the speech of the president of the Fed, Jerome Powell, the Tuesday. XAG/USD is trading at $28.22 after hitting a low of $27.97.
XAG/USD Price Analysis: Technical Outlook
After peaking around $28.74 last week, silver fell towards the $28.00 area before reversing course and turning positive during the day. However, the gray metal remains below the June 10, 2021 high of $28.28, which could open the door for a pullback.
The momentum indicator, as measured by the RSI, favors the XAG/USD bulls, but a daily close below $28.00 could pave the way for further losses.
In that case, the first support for XAG/USD would be the 38.2% Fibonacci retracement at $27.70, followed by the April 15 low at $27.59. Once broken, the next support would be the 50% Fibpnacci retracement at $27.06.
On the other hand, if Silver holds above $28.00, it could open the door for bullish continuation. The first resistance would be the May 10 high at $28.76. Once broken, key resistance levels appear, such as the $29.00 level, followed by the yearly high of $29.79.
XAG/USD Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
