Dollar Weakness Fuels Silver Price Surge to $69.02 Amid Bullish Technicals

Commerzbank analysts have reaffirmed that the US Treasury's stance on interest rates and currency strength is causing a structural headwind for the Dollar. According to their view, if faced with the choice between higher interest rates or a weaker USD, the Treasury would rather see a weak USD.

This stance has contributed to the recent surge in Silver prices, as XAG/USD trades firm at $69.02. Technical indicators on the daily chart are bullish, suggesting that upside attempts could persist, but bulls may meet resistance at the $70.00 psychological level or key resistance between the mid-June highs and the 200-day Simple Moving Average.

The Relative Strength Index (14) near 65 indicates strong but maturing bullish momentum, while the Moving Average Convergence Divergence (MACD) indicator remains in positive territory. On the downside, previous resistance around $67.20 could provide some support if there is a bearish reversal, with next targets at the August 18 low of $63.20 and the August 5-6 lows around $61.00.