Silver Price Forecast: XAG/USD clears 50-day SMA, eyes $65
Silver price surges nearly 3% as it clears the 50-day Simple Moving Average (SMA) at $62.13, and reclaims the $63.00 figure as it struggles to surpass key resistance seen at $63.28, the July 6 high.
Silver surged nearly 3% as it broke the 50-day Simple Moving Average (SMA) at $62.13, and successfully reclaimed the $63.00 level despite failing to surpass the $63.28 key resistance level from July 6. Trade sentiment was buoyed by the Relative Strength Index (RSI) crossing above its 50-neutral level, indicating a potential overbought condition around the 70 level.
Should the white metal cross $65.00, the 100-day SMA at $68.98 would be next in line, followed by the psychological $70.00 mark once breached. Upon clearing this, the 200-day SMA at $71.22 would become the subsequent ceiling. Conversely, a retreat below $63.00 would trigger a retracement towards the 50-day SMA. In the event of further downward momentum, silver could descend to the August 3 low of $56.57.
Silver boasts a diverse range of use cases, including investment, jewelry, and industrial applications, primarily due to its high electrical conductivity. The precious metal's price is swayed by various factors, such as geopolitical unrest, economic instability, interest rates, and the US Dollar's performance. Its price correlation with Gold, as well as the Gold/Silver ratio, aids in determining the relative valuation of the two commodities.
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