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Silver Price Prediction: Is This XAG/USD Dip A Buying Opportunity?

Silver (XAG/USD) price had a 0.87% pullback on Friday. Nevertheless, the precious metal still managed to close the week 1.34% higher than the week before. Let’s try to determine with the help of the latest technical analysis, if the current pullback is a good buying opportunity.

On Christmas day, XAG/USD remained unmoved as the major trade centers across the globe remained closed. The trading will resume from the last week’s closing price of $24.18 tomorrow. However, the trading volume might remain low due to the holiday season.

Even though, silver experienced a correction on Friday, gold price still gained 0.34% on the same day. This showed that the investors preferred gold over silver amid a strong downtrend in the dollar strength (DXY) index.

However, the DXY chart shows that the index has hit a strong support level, which may result in a bounce in the coming days. If such a bounce occurs, gold and silver prices might face a pullback in the coming days.

On the other hand, technical analysis still gives a bullish silver price prediction as XAG/USD is once again trading above the uptrend line. As long as the price holds this diagonal support, the outlook will remain positive.

Silver price technical analysis of daily chart
XAG/USD Technical Analysis