XAG/USD climbs to its highest level since July 7, driven by a breakout above key moving averages and dollar weakness.
Silver (XAG/USD) extended gains for a second consecutive session, reaching near $62.00 during early European trading—the highest level in a month. The rally followed a breakout above the 200-period Simple Moving Average on the 4-hour chart and the $60.00 psychological mark, fueling bullish momentum.
The Relative Strength Index (RSI) at 73.53 indicates overbought conditions, though the Moving Average Convergence Divergence (MACD) remains positive. Resistance is seen at $62.92, the 23.6% Fibonacci retracement of the May-July decline, with further targets at $67.98 and $72.08. Support lies at $59.04 and $54.73.
Optimism over a potential US-Iran deal and receding Federal Reserve rate hike bets have weighed on the US Dollar (USD), supporting silver’s upward trajectory. The technical setup suggests further upside potential, with pullbacks likely to attract buyers.