Silver prices on the XAG/USD charts showed that the white metal gained slightly as a result of some bullish follow-through buying. However, the latest bullish move lacks conviction, as the asset has hit a strong resistance level just around 24.5 cents. The pair has however hit 2-week highs, tracking the moves of gold price.
Further providing a cap on silver price upside action is the modest rise in US Treasury bond yields, which has offered some support to the US dollar. This is mirrored by the 0.05% gain in the US Dollar index on a day that offers very little in terms of any market-moving economic data from the US. So far, there has been little in the way of progression in stimulus news from mere talk to concrete action, which has also capped losses of the greenback.
The price dynamics of the US Dollar as well as developments on the stimulus front, rather than recovery of industrial demand, continue to serve as the fundamentals of the XAG/USD pair at this time.
Silver price is up 1.02% at the moment, trading at 24.652.
Technical Levels to Watch
Silver price on the XAGUSD daily chart has met resistance at the junction of the lower boundary of the broken rising wedge and the 24.569 resistance line formed by the previous high of 27 July and the prior low of 11 August. A rejection at this point could prompt a resumption of the initial downside move that resulted from the breakdown of the wedge. This move targets 23.164 in the first instance, with 22.387 and 21.637 lining up as additional near-term targets to the south.
On the flip side, further upside moves by silver price bulls must overcome the 24.569 resistance to bring 25.227 into view as the next upside target. 26.325 (lower boundary of the previous descending triangle) lies further north, as does 27.502 after it (10 September high).
Silver Price; Daily Chart