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SILVER PRICE ANALYSIS: XAG/USD RALLIES SHARPLY AS BULLS’ TARGET $30.00

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  • Silver trades at $29.73, up over 3.80% after softer US CPI report.
  • XAG/USD must surpass $29.79 and $30.00 for bullish momentum to continue.
  • Key supports at $28.75 and $28.00 if prices fall below $29.00.

Silver’s rally continued Wednesday after a softer-than-expected Consumer Price Index (CPI) report in the United States (US) sent US yields tumbling, a tailwind for the precious metal. The XAG/USD trades at $29.73, up by more than 3.80% on the day.

XAG/USD Price Analysis: Technical outlook

Silver’s price surpassed the $29.00 and $29.50 psychological levels yet remains shy of cracking the year-to-date (YTD) high of $29.79. That left a double top looming, but momentum favors the buyers, as depicted by the Relative Strength Index (RSI).

The XAG/USD must clear the YTD high and the $30.00 psychological level for a bullish continuation. A breach of those levels will expose the February 2013 high at $32.15, followed by the October 2012 high at $35.40


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