Silver price extends its gains for the sixth consecutive day, up over 1.30%, even though US inflation might prevent the Federal Reserve from cutting interest rates. This suggests that rates would be higher-for-longer, yet the white metal closes into the $90.00 figure, trading at $87.67 a troy ounce.
XAG/USD Price Forecast: Technical outlook
From a technical standpoint, XAG/USD is neutral to upward-biased, with buyers attempting to challenge the $89.50 area for the first time since mid-March. Nevertheless, they fell short, as the white metal peaked at around $89.36 before recoiling beneath $88.00.
Momentum remains bullish, as indicated by the Relative Strength Index (RSI), which is closing into overbought territory, suggesting that bulls are gaining traction.
Should XAG/USD clear $89.50, it would open the door to challenging $90.00. On further strength, the next stop would be the March 2 high of $96.62, ahead of $100.00.
On the bearish side, Silver would shift neutral if it drops below the April 17 daily peak, which has since turned into support at $83.06. Below this area, the next area of interest would be the 100-day Simple Moving Average (SMA) at $81.11, followed by the 20-day SMA at $77.76, ahead of the 50-day SMA at $77.09. Beneath this area, the next stop would be the $70.00 figure.
XAG/USD Price Chart – Daily
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