Silver prices surged by more than 2.10% on Tuesday, driven by increased fears of a stagflationary scenario following a Conference Board (CB) Consumer Confidence poll, despite a weaker US Dollar failing to contain the metal’s rise. At the time of writing, XAG/USD stood at $33.72, showing little change from previous levels.
Technical Analysis: Silver Bulls Gain Momentum
On Monday, I noted that Silver had formed a “quasi gravestone doji,” a pattern that typically signals a pause or reversal in an uptrend. However, given its appearance after a downtrend, it suggested that bearish pressure had weakened, with buyers stepping in near the $32.89 lows. This prediction played out as bulls drove prices higher, buoyed by declining US yields. Silver breached key psychological levels at $33.00 and $33.50, pushing the metal to its current price.
Looking ahead, if Silver maintains upward momentum, it may approach the March 20 peak of $33.94, followed by a potential test of the $34.00 mark. A breakthrough beyond this level could pave the way for a move towards last October’s peak of $34.86.
On the downside, if Silver retreats below the $33.00 mark, immediate support lies at the March 21 low of $32.66. A further drop could see Silver testing the 50-day Simple Moving Average (SMA) at $32.04.
