Silver Hits One-Month High as XAG/USD Surges Past $62.00
Silver's price surged to its highest level since July 7 as investors showed strong follow-through buying for the second straight day on Wednesday. The positive momentum lifted the white metal to the $62.00 neighborhood, exceeding a two-week-old trading range hurdle near the $60.00 psychological mark.
The Relative Strength Index (RSI) at 73.53 signals overbought conditions, while the Moving Average Convergence Divergence (MACD) remains positive, indicating that the upside momentum remains strong. However, a subsequent move up beyond the $62.00 mark is likely to confront a hurdle near the 23.6% Fibonacci retracement level of the May-July decline at $62.92.
The constructive technical setup suggests that the path of least resistance for the XAG/USD is to the upside, as the latest optimism over a potential US-Iran deal continues to undermine the US Dollar (USD). Any corrective slide could be bought into and remain cushioned amid receding US Federal Reserve (Fed) rate hike bets.