Aggressive USD selling following the disappointing GDP numbers has allowed silver prices to accelerate its advance.
The advance in silver price is also being ascribed to recent retail trade speculation that has been prompted by a subreddit page known as WallStreetBets group, the same group fingered as being responsible for the Dogecoin surge of Thursday. However, the upsurge which has seen silver prices on the XAG/USD chart gain more than $1.50 in an hour, has found the going above $27 tough. The XAG/USD pair is now off session highs and trades closer to $26.50.
Technical Levels for Silver Price
Today’s upside move has sent silver prices rocketing towards $27. However, prices have pulled back and are now targeting the 26.325 price level. A bounce on this support allows the upsurge towards the 27.502 resistance to resume. Price has to transcend this target area to aim for 28.073, with 28.921 (1 September 2020 high) lining up as an additional upside target.
On the other hand, a drop below 26.32 could bring in 26.03 or 25.38 into the picture as potential support levels. A drop below the channel consolidation area opens the pathway towards 23.16 or 22.54 if the decline is steep enough.
XAG/USD Daily Chart