Silver Price Analysis: XAG/USD soars after Fed’s decision, eyes set on $26.00
Silver prices surge nearly 3%, buoyed by the Federal Reserve's decision to maintain current interest rates.
US Dollar Index declines, supporting silver's upward momentum as investors digest the Fed's dovish stance.
Technical indicators suggest potential for further gains, with XAG/USD traders targeting the $26.00 resistance level.
Downside risks include a retracement towards the $25.00 support, and below.
Silver prices climbed on Wednesday after the US central bank, the Federal Reserve, held rates unchanged, delivering a “dovish” hold. Consequently, US Treasury yields edged down, and the Greenback remained pressured, as shown by the US Dollar Index (DXY), down 0.37% at 103.44. Therefore, XAG/USD trades at $25.61, up close to 3%.
XAG/USD Price Analysis: Technical outlook
Silver rallied sharply above the $25.50 rea, hitting a daily high at $25.63. A further upside is seen above that area, with grey metal traders eyeing $26.00 a troy ounce as the next key resistance level. Once those two levels are taken out, the next supply zone would be the April 18, 2022, high at $26.21, followed by the March 8, 2022, high at $26.94.
If sellers move in and drag prices below March 15’s high of $25.43, look for a drop toward $25.00. Once cleared, the next stop would be the December 22 high turned support at $24.60, followed by the $24.00 mark.
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