Silver Price Forecasts: XAG/USD remains bullish with dips capped above $67.40

Silver prices (XAG/USD) are currently bullish, with a recent pullback from the $70.00 level being capped above $67.40 on Thursday. This price action brought the asset back to the mid-range of the $68.00s during the European morning session. The overall trend remains positive, with price action holding steady above prior highs around $67.00.

However, market caution persists as investors await key insights from Fed Chairman Kevin Warsh's upcoming speech at the Jackson Hole Symposium, which is scheduled for Friday. The US Dollar experienced a brief respite on Wednesday, buoyed by US Personal Consumption Expenditures (PCE) Price Index data indicating inflation remained significantly higher than the Federal Reserve's target of 2%.

Nonetheless, expectations for a September rate hike have remained largely unchanged at 36%, as indicated by the CME Group's FedWatch Tool. Market volatility has been relatively low, and investors are currently observing from the sidelines, anticipating Warsh’s speech and scrutinizing its implications for US Dollar crosses and precious metals.

The bullish trajectory for XAG/USD dates back to mid-July lows below 55.00, but bulls have been struggling to overcome resistance at the $70.00 psychological barrier. The primary focus is on the price range between the mid-June highs, at $71.55, and the 200-day Simple Moving Average (SMA), which currently hovers around 72.40. Momentum indicators in daily charts remain bullish, albeit showing a somewhat diminished impulse.

The Relative Strength Index (14) is near 63, suggesting strong but not extreme bullish momentum, while the Moving Average Convergence Divergence (MACD) indicator demonstrates a still-positive reading. On the downside, initial support is positioned at the previous resistance level around $67.00, with a secondary floor at $63.25, which previously held bears during the August 18 session, following the August 6 low near $60.90.

Financial news editor and copywriter Guillermo has been instrumental in analyzing silver prices for various Forex-related firms, drawing from his educational background in Communication Sciences from the Universidad del Pais Vasco and Universiteit van Amsterdam.