Silver prices continued their upward momentum for a third consecutive day on Wednesday, climbing 0.21% as the US dollar weakened broadly. Investor demand for the precious metal remains strong following Moody’s downgrade of US sovereign debt and ongoing uncertainty surrounding the US fiscal budget. At the time of reporting, silver (XAG/USD) was trading at $33.45.
Technical Analysis: Silver Eyes Key Resistance Levels
Silver held steady within a $33.00 to $33.50 range throughout the session, closing near $33.40, just below the critical resistance at $33.50. According to technical indicators, notably the Relative Strength Index (RSI), buyers retain the upper hand. A clear break above the $33.50 resistance could accelerate gains, potentially pushing silver prices toward the $34.00 mark.
Conversely, a decline below $33.00 may trigger a correction, opening the door for silver to test its 100-day simple moving average (SMA) at $31.98. A further drop could see the 200-day SMA at $31.30 come into play as the next support level.
