Silver Price Analysis: XAG/USD stays firm and consolidates around $29.50

Silver Price Analysis: XAG/USD stays firm and consolidates around $29.50
  • Silver maintains gains above $29.50 for the second day, buoyed by rate cut speculation.
  • Neutral to downward bias with first support at the 50-DMA near $29.01.
  • Key resistance levels at $30.25 (June 12 high) and $31.00, with YTD high at $32.51 in sight.

Silver recovered some ground and traded above $29.50 for a second consecutive trading day, up by 0.30%. May’s US Retail Sales data disappointed investors and fueled expectations that the US central bank could cut rates this year. This weighed on US Treasury yields and the Greenback.

XAG/USD Price Analysis: Technical outlook

Silver’s metal is showing a neutral to downward bias after hitting an eleven-year high of $32.51. Since then, it has retreated towards the area near the 50-day moving average (DMA) at approximately $29.01, the first support level.

Momentum shows that neither buyers nor sellers remain in charge, as the Relative Strength Index (RSI) hovers at around the 50-midline.

That said, if XAG/USD rises past the $30.00 figure, the grey metal will extend its gains. The first resistance would be the June 12 high of $30.25 followed by the $31.00 mark, ahead of challenging the year-to-date (YTD) high of $32.51.

Conversely, if XAG/USD sellers keep prices below $30.00, the first support would be the 50-day moving average (DMA) at 29.01, followed by the 100-DMA at $26.40, followed by the May 2 low of $26.02.

XAG/USD Price – Daily Chart

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