At the time of writing, Silver prices (XAGUSD), were up by 0.83% on the day, and the price had also breached the horizontal resistance level of $17.88. The next primary resistance level for the price is now the September 23 high at $18.73, while the trend will remain upwards as long as the price trades above the October 22 low of $17.40.
The surge in silver prices comes on the heels of yesterday’s weaker than expected US durable goods orders data, and it is fulling expectations that the Federal Reserve will cut interest rates for the third time this year. The next rate meeting will take place on October 30, and the rates markets anticipate a rate cut of 25 bps to 150-175, with a 93.5% probability.
The move to the upside in Silver prices is also supported by the completion of an ascending triangle pattern. The pattern is constructed by drawing a trend line via the October 1 and October 16 lows and is completed by the horizontal resistance level at $17.88. The pattern is now suggesting that silver prices might be able to reach the $18.59 level.
Traders that did not buy silver already, will probably wait for a price correction to obtain a better risk-reward ratio.