Silver Price Analysis: XAG/USD consolidates around below $31.00 despite falling US yields


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  • Silver
    consolidates
    within
    $30.50-$31.00
    range,
    trades
    at
    $30.80,
    up
    0.11%.

  • RSI
    indicates
    bullish
    momentum,
    but
    flat
    slope
    suggests
    buyers
    are
    cautious.

  • Key
    resistance
    at
    $31.00,
    July
    5
    high
    of
    $31.49;
    support
    at
    $30.50
    and
    $30.18,
    with
    critical
    level
    around
    $29.78/74.

The
grey
metal
registered
minimal
gains
on
Wednesday
as

Silver

has
been
consolidating
within
the
$30.50-$31.00
range
since
Tuesday.
Even
though
US
Treasury
yields
edged
lower
along
with
the
US
Dollar,
XAG/USD
was
unable
to
capitalize
on
it
and
traded
at
$30.80,
up
0.11%.

XAG/USD
Price
Analysis:
Technical
outlook

The
XAG/USD
trades
subdued
as
shown
by
the
daily
chart,
fully
confirmed
by
momentum
as
depicted
by
the
Relative
Strength
Index
(RSI).
Even
though
RSI
is
bullish,
the
slope
turned
flat,
an
indication
that
buyers
remain
at
bay.
That
said,
Silver’s
spot
price
remains
above
the
‘double
bottom’
chart
pattern
neckline,
hinting
that
an
uptrend
continuation
is
on
the
cards.

If
XAG/USD
clears
the
$31.00
psychological
level,
the
first
resistance
would
be
the
July
5
high
at
$31.49,
followed
by
the
May
29
high
at
$32.29.
Once
surpassed,
the
year-to-date
(YTD)
high
at
$32.51
would
be
up
for
grabs.

On
the
other
hand,
if
sellers
stepped
in
and
dragged
prices
below
$30.50,
the
first
support
would
be
the
July
5
low
of
$30.18.
If
cleared,
the
next
stop
would
be
the
confluence
of
the
April
12
peak
turned
support
and
the
50-day
moving
average
(DMA)
at
around
$29.78/74.

XAG/USD
Price
Action

Daily
Chart


Silver
FAQs

Silver
is
a
precious
metal
highly
traded
among
investors.
It
has
been
historically
used
as
a
store
of
value
and
a
medium
of
exchange.
Although
less
popular
than
Gold,
traders
may
turn
to
Silver
to
diversify
their
investment
portfolio,
for
its
intrinsic
value
or
as
a
potential
hedge
during
high-inflation
periods.
Investors
can
buy
physical
Silver,
in
coins
or
in
bars,
or
trade
it
through
vehicles
such
as
Exchange
Traded
Funds,
which
track
its
price
on
international
markets.

Silver
prices
can
move
due
to
a
wide
range
of
factors.
Geopolitical
instability
or
fears
of
a
deep
recession
can
make
Silver
price
escalate
due
to
its
safe-haven
status,
although
to
a
lesser
extent
than
Gold’s.
As
a
yieldless
asset,
Silver
tends
to
rise
with
lower
interest
rates.
Its
moves
also
depend
on
how
the
US
Dollar
(USD)
behaves
as
the
asset
is
priced
in
dollars
(XAG/USD).
A
strong
Dollar
tends
to
keep
the
price
of
Silver
at
bay,
whereas
a
weaker
Dollar
is
likely
to
propel
prices
up.
Other
factors
such
as
investment
demand,
mining
supply

Silver
is
much
more
abundant
than
Gold

and
recycling
rates
can
also
affect
prices.

Silver
is
widely
used
in
industry,
particularly
in
sectors
such
as
electronics
or
solar
energy,
as
it
has
one
of
the
highest
electric
conductivity
of
all
metals

more
than
Copper
and
Gold.
A
surge
in
demand
can
increase
prices,
while
a
decline
tends
to
lower
them.
Dynamics
in
the
US,
Chinese
and
Indian
economies
can
also
contribute
to
price
swings:
for
the
US
and
particularly
China,
their
big
industrial
sectors
use
Silver
in
various
processes;
in
India,
consumers’
demand
for
the
precious
metal
for
jewellery
also
plays
a
key
role
in
setting
prices.

Silver
prices
tend
to
follow
Gold’s
moves.
When
Gold
prices
rise,
Silver
typically
follows
suit,
as
their
status
as
safe-haven
assets
is
similar.
The
Gold/Silver
ratio,
which
shows
the
number
of
ounces
of
Silver
needed
to
equal
the
value
of
one
ounce
of
Gold,
may
help
to
determine
the
relative
valuation
between
both
metals.
Some
investors
may
consider
a
high
ratio
as
an
indicator
that
Silver
is
undervalued,
or
Gold
is
overvalued.
On
the
contrary,
a
low
ratio
might
suggest
that
Gold
is
undervalued
relative
to
Silver.