Silver (XAG/USD) price appears to be in a correction after making fresh yearly highs last week. Gold and Silver both rallied last week as the banking crisis in the US deepened. Despite a pullback on Friday, Silver price per ounce still gained 2.41% last week.
My previous Silver price prediction was perfectly met last week as the price surged to $26.12. This price surge was surprising for many analysts as the US Federal Reserve and the European Central Bank both hiked the interest rates by 25 bps in their respective jurisdictions.
Silver Price Remains Strong As DXY Tumbles
The collapse of First Republic Bank has increased banking concerns in the United States. This has led to a weakness in the US dollar as the DXY Index dropped near its yearly lows. Consequently, the dollar strength index is hanging by a thread right now. If it dips below 101 points, then Gold and Silver may soar to new highs very soon.
Silver price started this week with sideways price action. During its London session, the precious metal was trading at $25.57 after showing a tiny loss for the day. However, Gold had another green day as the preferred store of value tried to gain strength above 2022.
Silver Price Consolidates In The Supply Zone
As described in my previous analysis, the $25.3-$26.8 region is a major supply zone for XAG/USD. The price has been hovering within this supply zone since last week. The breakout from the descending triangle took the price to a new YTD high last Friday, but the price couldn’t gain strength above $26.
Silver price prediction may become extremely bullish if the price breaks above the $26.8 level. In such a scenario, I expect the precious metal to soar to a new all-time high. The falling DXY index may act as a catalyst for such a bullish move.
If you are into cryptocurrencies & commodities and need my up-to-date analysis of these assets, you are welcome to join my free Telegram channel.