- Silver rose 0.80% to $30.35, outperforming US inflation concerns, Fed analysis.
- Technical Obstacle at 50-Day SMA of $30.42; a breach could push silver to $30.80.
- Downside risk if silver falls below $30.00, key support at 200-day SMA, low near $28.78.
The price of silver has risen for seven days in a row, barring a rise in US Treasury yields and the US dollar, after a sturdy US jobs report reassured Federal Reserve officials on the US employment situation. Nevertheless, inflation developments appear to have stalled, which has caught the attention of Fed officials. The XAG/USD rate is USD 30.35, up over 0.80%.
XAG/USD Price Forecast: Technical Outlook
Silver continues to trend higher, consistently holding above the $30.00 level in recent days of fhree trading, encouraged by buyers emerging from key support found at the 200-day Simple Moving Average (SMA) at $29.93. However, they face confusion resistance at the 50-day SMA at $30.42, which is keeping prices from reaching the 100-day SMA at $30.80.
If the bulls break through these levels, it will open the door to breaking $31.00 and exposing the next cycle high at $32.32, which is the December 12 high.
Conversely, if XAG/USD falls below $30.00, the bulls’ first line of defense will be the 200-day SMA. Breaking above this level could send silver price towards the January 6 low of $29.41 before the December 31 low of $28.78.
