Silver Price Jumps on Intervention Speculation, Targets $60.00 Breakout

The Silver price has been on a rebound for two days and reached a three-day high above $59.00, amidst growing speculation of intervention in foreign exchange markets to boost the Yen and weaken the Greenback. At present, XAG/USD is trading at $59.22.

After eight days of consolidation with no clear bias, Silver has started showing signs of life by reclaiming the $59.00 level while still respecting its downward market structure. The Relative Strength Index (RSI) indicates that neither buyers nor sellers are in control, but it is heading higher since four trading days ago.

For a continuation of this bullish trend, Silver must clear the psychological $60.00 mark. A breach above this level exposes the July 22 peak at $60.94, before challenging $61.00. On the other hand, if sellers manage to drag Silver below the July 28 daily low of $56.64, it could tumble and test the yearly low of $54.77.