Silver (XAG/USD) pauses a four-day winning streak on Monday as buyers take a breather following last week’s 5.55% rally.
A firmer US Dollar (USD) is also capping the precious metal’s upside
At the time of writing, XAG/USD is trading around $61.75, easing from its intraday high of $63.28, the highest level since June 23. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies is trading around 100.12, up 0.22% on the day. Despite Monday’s modest pullback, Silver’s near-term outlook remains supported by easing expectations of a near-term Federal Reserve (Fed) interest rate hike following weaker-than-expected US Nonfarm Payrolls (NFP) data released on Thursday.
However, the technical picture tells a different story, as Silver remains capped below both its short- and long-term moving averages. Technical analysis: In the daily chart, XAG/USD remains in a bearish near-term bias as price holds below the 21-day Simple Moving Average (SMA) at $63.45 and the broader 200-day SMA at $70.06, underscoring a market that is still capped by medium- and long-term trend resistance. The Relative Strength Index (RSI) has recovered from oversold levels but remains around 42, while the Moving Average Convergence Divergence (MACD) has turned slightly positive, suggesting the rebound may be temporary within the broader downtrend.