Silver Trades At 3 Year High

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Silver Trades At 3 Year High

Silver (Xag/Usd) Trades At $27.00, Sitting Comfortably At 3-Year High

rapid rise was witnessed in Silver (XAG/USD), which closed the week with a 10% upside. In doing so, the precious metal has touched its 3-year high, which signifies a major shift as investors are now favoring volatile assets.

For now, the Silver (XAG/USD) can be seen at nearly $27.45 price level with a gain of 2% for the day. It appears that Silver has mostly ignored the recent US job report, which hinted at a possible day in the rate cuts.

Low Chances Of June Rate Cut

And if we look at the CME FedWatch tool, the chances of a 0.25% rate cut in June have gone down. However, the chances of a rate cut in July are still pretty strong.

As Silver sits comfortably at yearly highs, the same price action unfolds in gold, which also has all-time highs.

The technical outlook of Silver (XAG/USD) shows that it dropped under the $26.29 handle after the release of the US NFP. However, the decline in Silver (XAG/USD) was quickly reversed as the precious metal once again rallied and touched yearly highs.

Meanwhile, the RSI indicator prints readings in the overbought area, which traders mostly ignore. Another meaning of such a high reading is the presence of strong bullish momentum.

The next resistance for the Silver (XAG/USD) is now present at the $27.50 and then the $28.00 round figure. If the Silver (XAG/USD) bulls continue with their ascend, the next stop will be $28.81, the high of June 2021.

look towards the downside shows that a decline in the RSI will lead to a pullback. This could send the Silver (XAG/USD) near the $27.00 support zone. If this support of Silver (XAG/USD) fails to hold, the precious metal will then head towards $26.12 and then $26.00.

On the daily chart of Silver (XAG/USD), the 20 SMA is trading near $25.07, while the 200 SMA is near $23.45. In the event of a bearish pressure, Silver bulls could find refuge at these levels.

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