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.