Silver (XAG/USD) price appears to be gaining strength once again after having a pullback. After a 15.3% price surge in March 2023, the precious metal added 3.9% to its gains in April 2023. The uptrend continued in May as the price went up 2.87% on the first trading session of the month.
On Monday, XAG/USD is looking very strong as the Silver price per ounce is trading at $25.72. This makes the third consecutive green day after a recent bounce from the $24.6 support. Our analysis shows that a bullish chart pattern can send the price to $26 very soon.
The precious metals like Gold & Silver often show a very strong correlation to the dollar strength (DXY) index. However, for the past few days, the Silver price has been surging despite a strong bounce in the DXY index. This shows that the demand for silver is on the rise. Today’s surge in Silver is also surprising because it is showing even more strength than Gold.
The DXY index is showing minor gains during the first trading session of the week. Gold price broke above $2000 once again after grabbing the liquidity below the key psychological level. However, Silver was the biggest gainer today. The precious metal was trading 2.87% above its previous close during its London session.
On 4H chart, XAG/USD pair shows a clear breakout from the descending triangle pattern. Such breakouts are very bullish, and their target can often be predicted. Considering the momentum behind the current rally, it is quite likely that the Silver will break above its yearly high of $26.08 this week.
However, this bullish Silver price prediction depends on this Week’s FOMC meeting. An unexpected rate hike might make the current bullish move look like a fakeout. On the other hand, a pause in rate hikes by the US Fed can send Gold and Silver prices to new their new highs in 2023.
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This post was last modified on %s = human-readable time difference 13:53