Silver price bounces off around $49.00, gaining nearly 3% on Monday due to US Dollar weakness and falling US yields, as energy prices tumbled amid speculation of a resolution to the US-Iran conflict. Price action in the white metal hasn’t changed abruptly. The XAG/USD trades at $50.53 at the time of writing.
Silver Price Forecast: Technical outlook
On Monday, XAG/USD has recovered some ground, but it remains downward-biased as the 50-day Simple Moving Average (SMA) crosses below the 100-day SMA, and, as of writing, the SMAs are in order to confirm a bearish trend.
Despite this, the Relative Strength Index (RSI) indicates that buyers are gaining momentum, but sellers remain in control. This is because the index turned extremely oversold last Thursday as Silver tumbled below $49.00 per troy ounce.
For a bullish reversal, XAG/USD must clear the October 30 high of $52.32. Once cleared, the next stop is the $55.00 psychological figure, followed by the October 20 high at $58.61, ahead of the $60.00 mark.
On the downside, the first support is last Friday’s low of $48.87, followed by the $48.50 and the $48.00 psychological levels.
Silver Price Chart – Daily
Silver daily chart
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