A late surge by silver price bulls has sent the XAG/USD pair soaring above $28 for the first time since February 2021. Silver price thus followed several metals that hit monthly highs on Monday.
XAG/USD powered towards its 3rd highest closing price since September 2020, as bond yields cooled off. Spot silver price hit a high of $28.28 in the New York session before retracing slightly for a 2.82% gain as of the time of writing.
Monday’s rally in silver prices comes as US indices lost ground, and US bond yields on the 10-year Treasury note only posted an underwhelming 0.42% gain on the day. The US Dollar continues to show weakness as traders await Wed’s Fed minutes.
Technical Levels to Watch
The XAG/USD is now testing resistance at the 28.07 price mark. A successive close above this level confirms the break of this price mark, opening the pathway for bulls to aim for the 28.359 resistance (23 February high). Above this level, the 2 February high at 29.02 comes into play, before the 30.03 psychological price area comes into the picture, being 2021’s price top.
On the flip side, a failure to breach the 28.07 resistance or rejection from 28.359 ultimately needs to break down the 27.502 support for a reversal to take place, targeting 26.86 and 26.62 initially. Below these price pivots, additional support levels to the downside are found at 26.32 and 26.03.