Silver Bulls Target $72.03 Moving Average as Prices Surge
Silver prices have been on the rise, and now they're eyeing a crucial milestone. Spot silver finished higher on Friday, with momentum strong enough to put it within reach of the June 17 high at $71.56.
More importantly, silver is closing in on its 200-day moving average at $72.03, which determines the long-term trend. If buyers can push through this level, they could attract new institutional investment and drive prices up to the long-term retracement zone of $74.63 to $83.61.
However, if buyers fail to sustain a move above Friday's high at $70.02, profit-taking could become a concern. In that case, the first downside objective would be the retracement zone at $66.29 to $65.41.
The dollar and Treasury yields are key factors influencing silver prices right now. Buyback operations are set to begin in September, and debt and deficit concerns have not been resolved. Inflation data and Fed commentary will also play a role in determining the market's direction.