- Silver is holding firm in Asia and is a compelling technical setup on the daily chart also.
- Bulls will seek an upside extension from a solid daily support structure.
XAG/USD was ending on the bid on Thursday but was unable to break above the R1 pivot and 4-hour resistance in reaching a high of $28.00.
With that being said, there are bullish prospects, as illustrated below, should the price hold at currently support.
Meanwhile, the white metal had travelled from a low of $27.39 and ended the day 0.13% higher but the gold to silver ratio was a touch higher by 0.27% as gold was favoured.
The greenback was on the backfoot again, giving back its gains made the prior day following a surprise that came in several Federal Open Market Committee policymaker’s discussions in the minutes on tapering of government bond purchases.
The members had discussed that it would be appropriate “at some point” should economic recovery continue to gather steam. Nonetheless, the greenback and US yields both melted on Thursday which helped support the commodity sectors in an improved risk environment.
Silver, technical analysis
Technically, the price of the white metal is up against a wall of 4-hour resistance and has so far been able to penetrate higher grounds in what is a daily correction of the prior daily bullish impulse.
This is further illustrated on a 1-hour time frame basis here:
Silver Price Analysis: XAG/USD remains inside a choppy range below $28.00
Failures to move higher at this juncture put the bears back in charge with sights of the breaking below the support structure made up of the mid-May highs near 27.60.
This guards the early May highs as the next support block just below 27 the figure.
However, there is a compelling argument from a daily perspective as follows:
Should the price hold the current daily support, then an upwards continuation will be on the cards in line with the broader trend.
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