Silver Price Analysis: XAG/USD Skyrockets Over 2% Amid ‘Double Bottom’ Confirmation

By Christian Borjon Valencia of FX Street

Thursday, July 11, 2024 7:00 PM EDT

Silver, Bars, 5000 Grams, Real Value

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Silver breaks $30.73 neckline, surges past $31.00 to trade at $31.40.
Bullish momentum affirmed by RSI, with resistance at $31.75, $32.00, and $32.51 (YTD high).
Key support levels: $31.00, $30.73 (June 21 high), and $29.82/79 (50-DMA) for potential pullbacks.

Silver price confirmed a ‘double bottom’ chart pattern, sponsored by weaker than expected US inflation data, that puts back into the table discussion about when the Federal Reserve would begin to ease monetary policy. Therefore, the XAG/USD trades at $31.40, moving up more than 2%.

XAG/USD Price Analysis: Technical outlook

The grey metal finally cleared the ‘double bottom’ neckline at $30.73, which opened the door for Thursday’s rally above the $31.00 figure. It hit a six-week high of $31.75 before settling at around current spot prices.

Momentum shows buyers are regaining control, as depicted in the Relative Strength Index (RSI). This opens the door for further upside in the XAG/USD.

Silver’s next resistance would be $31.75, followed by the $32.00 psychological figures. Once surpassed, the May 29 peak of $32.15 emerges, ahead of the year-to-date (YTD) high at $32.51. Further gains are seen above the latter.

Conversely, if XAG/USD spot price tumbles beneath $31.00, that could exacerbate a pullback. The next demand zone will be the June 21 high at $30.73, followed by the $30.00 mark. Up next, sellers will test the confluence of the April 12 high and the 50-day moving average (DMA) at $29.82/79.

XAG/USD Price Action – Daily Chart

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