Following a multi-month correction, silver prices have staged a confident recovery over the past two weeks. The rally was largely triggered by a recent de-escalation of the Middle East conflict. Another catalyst was the Federal Reserve’s (Fed) softening monetary stance—further confirmed by sluggish US labor market data last Thursday. Together, these factors weighed on the dollar and boosted demand for precious metals.
Keep an eye on the greenback’s dynamics, as well as gold’s. After the United States released weaker-than-expected macroeconomic statistics, traders shifted their focus to commodities, lifting silver. The metal is no stranger to elevated volatility. So, a weaker dollar and stronger gold could give XAGUSD a helping hand. Moreover, silver’s rise may even outshine that of its yellow counterpart.
From a technical standpoint, bullion prices managed to consolidate above the $55.00–$60.00 support zone, creating a reversal pattern after a prolonged correction. Silver is currently trading within an uptrend. The nearest target could be the resistance level at $67.00.
The final recommendation:
— Buy silver at the current price of $62.00, aiming for $67.00 within a couple of weeks.
— Place a Stop Loss order at $60.00, slightly below support, to manage risks if the market plays against us.
This content is for informational purposes only and is not intended to be investing advice.
