Silver Price Analysis: XAG/USD surges above $31.50 amid thin trading
- Silver rallies over 4%, trading at $31.42 after rebounding from a low of $30.25 in thin liquidity.
- Technicals indicate strong upward bias, with bullish RSI not yet overbought.
- Key resistance levels: Psychological $32.00 figure, YTD high at $32.51, and $33.00 mark.
- Key support levels: $31.00 figure, $30.50 psychological level, and May 23 low of $30.07.
Silver prices rallied sharply on Monday, posting gains of more than 4%. At the time of writing, they were at $31.42. The grey metal bounced off daily lows of $30.25, capitalizing on thin liquidity conditions as Wall Street remained closed in observance of Memorial Day.
XAG/USD Price Analysis: Technical outlook
The daily chart suggests that Silver is upward-biased, yet it remains shy of testing the year-to-date (YTD) high of 32.51. Momentum supports buyers, as the Relative Strength Index (RSI) remains bullish though short of turning overbought.
With that said, the XAG/USD first resistance would be the psychological $32.00 figure. Once cleared, overhead resistance lies with the YTD high, followed by the $33.00 mark.
Conversely, the XAG/USD first support would be the $31.00 figure. Further losses lie below that demand area, like the $30.50 psychological level, followed by the May 23 low of $30.07.