Silver Price Forecasts: XAG/USD hesitates at $62.00 after a two-day rally

Silver (XAG/USD) has been struggling to maintain gains after a nearly 7% rally over the past two days, with the pair currently hovering just above $62.00. Recent macroeconomic data from the US has not been favorable, raising concerns about a poor Nonfarm Payrolls report on Friday and speculation of a rare Federal Reserve rate hike in September.

This has led traders to scale back hopes for a rate increase and reduced their optimism surrounding the precious metal. US Treasury yields have fallen, with the 10-year note's yield dropping about 10 basis points from last week's highs, and the 2-year yield being 18 basis points below July's peak. These lower yields generally make investors favor precious metals, such as Silver, which offer yield-less returns.

The 4-hour Relative Strength Index (14) is moving away from overbought levels but is still in bullish territory, and the Moving Average Convergence Divergence (MACD) indicator remains above zero, indicating that buyers still have control. Ultimately, the near-term outlook for Silver remains bullish as long as it stays above the previous resistance level around $60.70-$60.95, which has previously capped bulls in July.

The next significant target for bulls would be the July peak near $63.30, with a potential third target at the June 22 high, just above $67.00.