Silver Moves Up By More Than 2% Following Recent Poor Performances
Silver is finally rallying after trading in the red zone for the past two days and could even surge higher if the precious metal can keep up the momentum in the coming trading sessions.
XAG Up By More Than 2%
Silver has come out of its recent slump and is rallying again. This comes after the precious metal spent the first two days of the week in the red zone and came close to dropping below the $22 mark.
The latest rally saw XAG top the $23 mark for the first time in days. As a result, Silver has surpassed the shooting star on its trading chart, indicating that the bulls are in control and could send the market higher than its 50-day EMA.
The bullish performance is an indicator that investors are paying attention to the precious metal, and the interest could pick up over the coming days. If that happens, the XAG could look to break past the $24 level in no time as the market rally continues. If Silver can surpass the $24 resistance level, then investors could likely rush into the market in a bid to buy and hold as they will likely anticipate further gains in the coming weeks and months.
XAG Could Still Turn Bearish
While the XAG chart is looking bullish at the moment, the precious metal hasn’t exactly given confidence to investors in recent trading sessions. Silver could still drop towards the $22.50 support level over the coming hours if the sellers overwhelm the buyers.
Investors continue to consider the greenback as the major decider on how Silver performs from now till the end of the year. A strong US Dollar would negatively affect XAG and cause its price to drop lower over the coming weeks.
However, if the greenback doesn’t rally over the coming weeks, then Silver has an excellent opportunity to rally higher.