XAG/USD Analysis: Silver Price Fails to Hold at 11-Year High
As shown on the XAG/USD chart, during the trading session on 26th September, the price of silver surpassed the previous 2024 high (set in July), reaching levels last seen in December 2012.
Key drivers of silvers price include news related to the Federal Reserves policy:
Last month, when the Federal Reserve cut interest rates, it led to a rise in both gold and silver prices.
However, precious metal prices dipped slightly yesterday after Fed Chair Jerome Powell adjusted expectations regarding further rate cuts this year, stating that the Fed would not rush into making more reductions.
Technical analysis of the XAG/USD chart reveals:
Since August, the price of silver has formed an ascending channel (shown in blue). In September, bullish sentiment strengthened, establishing points for a steeper upward channel (marked by purple lines).
The price surge at the end of September caused the RSI indicator to form a bearish divergence, making silver vulnerable to a correction after hitting a historic high which is what followed.
What comes next?
It largely depends on upcoming fundamental news. Currently, silvers price appears to be in consolidation, confined by the triangle formed by the boundaries of the two channels (shown by black lines). A breakout from this triangle could potentially lead to a significant trend forming.
Read more: https://fxopen.com/blog/en/oa-xag-usd-analysis-silver-price-fails-to-hold-at-11-year-high/
Text source: Forex Trading Blog
