XAG/USD price rallies toward $31.00 amid key resistance levels
Silver starts the week with gains
Silver began the week on a strong note, climbing during Asian trading hours on November 18 to the $30.70-$30.75 range.
It then continued its upward movement, gaining 2% to reach $30.96 since the start of the trading day.
Last week, the XAG/USD pair rebounded from the $29.70-$29.65 support zone, representing the 61.8% Fibonacci retracement level of the August-October rally. Market conditions on the first trading day of the week are also favoring silver’s rise. However, technical indicators on the daily chart remain in bearish territory.
The 14-day Relative Strength Index (RSI), currently at 42.56, is far from oversold levels. This suggests that on its upward path, silver is likely to encounter significant resistance near the $31.00 mark.
Growth potential but with limits
Beyond $31.00, XAG/USD could face its next major hurdle around $31.70 (the 38.2% Fibonacci retracement level) before attempting to reclaim the round figure of $32.00.
Despite its recent momentum, silver prices have already risen over 29% year-to-date, leading some to see its near-term upside as temporarily constrained.
On the downside, immediate support lies around the $30.20 level, followed by the psychological threshold of $30.00. Below that, the $29.70-$29.65 region, which marked a two-month low last Thursday, could act as a stronger support.
A break below this level could serve as a fresh trigger for bearish traders, dragging XAG/USD below $29.00 toward the critical 200-day SMA support in the $28.80-$28.75 range.
The further movement in silver prices will depend on whether tensions in the Middle East escalate further, the outlook for an economic recession in China, and the implementation of Donald Trump’s plans after he takes office.
As previously mentioned, the positive trend looks more favorable, driven by sustained demand for safe-haven assets. Notably, on October 23, gold reached a new high, climbing to $2,755 per ounce.
