Weakened Dollar Boosts Silver Prices, but Trend Strength Remains Weak
Silver prices are on an upward trend as the US Dollar reverses its intraday gains, causing traders to book profits. At $66.76, XAG/USD is trading at its highest level since September 10 and has risen over 3% this week.
The metal's price movement is closely tied to the US Dollar, with a strong Greenback typically keeping Silver prices in check. However, as the Dollar weakens, Silver tends to rise.
Technical analysis suggests that while XAG/USD holds above its 50-day Simple Moving Average (SMA) and 100-day SMA, it still faces significant resistance from the 200-day SMA at $73.18.
The Relative Strength Index (RSI) is leaning mildly bullish, but the Moving Average Convergence Divergence (MACD) indicator remains slightly negative, indicating that upside momentum is improving but not yet decisive.