Silver Price Surges to Two-Month Highs Amid US Dollar Weakness

The silver price (XAG/USD) has surged to fresh two-month highs above $69.00, marking its third consecutive day of gains. This comes as investors continue to shy away from the US Dollar following the US Treasury's plan to boost buybacks of long-term securities.

Commerzbank analysts believe this stance by the US Treasury adds a structural headwind for the Dollar, indicating that it would rather see a weak USD than higher interest rates. This has led to a 6.6% weekly rally for silver prices.

The 200-day Simple Moving Average (SMA) at $72.05 is now in focus, and bulls are likely to meet resistance at the $70.00 psychological level. However, key resistance lies between the mid-June highs of $71.56 and the 200-day SMA.