Downtrend to Resume Soon as Silver Price Faces Obstacles Above
The Silver price has gained $0.60 in the US session, but the trend remains bearish for three weeks and buyers are facing obstacles above.
The Silver price has gained $0.60 in the US session, but the trend remains bearish for three weeks and buyers are facing obstacles above. As a result, the retrace higher has limited potential, despite the FED being sort of neutral yesterday and turning the USD softer. However, Silver made new lows earlier today, which means that it is not benefiting from the FED’s stance, unlike Gold and other major currencies.
Silver (XAG) reversed its previous rising trend earlier this month, falling to an intraday low of $26.00 this morning. This decrease coincided with Gold’s (XAU) falling below $2,300 last week. The decline in precious metals was related to lower geopolitical tensions and a stronger US currency, which is being pushed by lower expectations of an impending Federal Reserve rate decrease and an increase in global risk appetite.
During the first half of this month, silver (XAG) experienced significant positive momentum, with buyers pushing the price above $29.79 but the reversal eventually happened. The 20-period Simple Moving Average (SMA) on the daily chart was providing support, showing the strength of the uptrend, but all MAs have been broken now and are acting as resistance indicators.
Silver Chart H4 – MAs Have Turned into Resistance
The surge in industrial demand for silver is primarily driven by investments in green energy projects. This trend is anticipated to persist, leading to substantial increases in industrial silver demand in 2024 and beyond. Notably, China’s sustained large-scale gold purchases since 2022—its lengthiest buying streak in over two decades—have indirectly contributed to the rise in silver prices due to their historical correlation.
During the first half of this month, silver (XAG) witnessed significant positive momentum, with buyers propelling the price above $29809. The 20-period Simple Moving Average (SMA) on the daily chart provided support, indicating the robustness of the uptrend.
Silver Live Chart
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