Silver (XAG/USD) jumps more than 4% on Wednesday as weaker-than-expected US ADP employment data and easing energy-driven inflation prompt traders to scale back expectations for Federal Reserve (Fed) rate hikes.
At the time of writing, XAG/USD trades around $62.30, near its highest level in a month
From a technical perspective, the latest leg higher has improved the near-term outlook. However, the broader trend remains cautious as Silver approaches key resistance levels. On the daily chart, XAG/USD has reclaimed the 21-day Simple Moving Average (SMA) at $58.31 and is now challenging the 50-day SMA at $62.65.
The Relative Strength Index (RSI) has risen to 56, while the Moving Average Convergence Divergence (MACD) stays above zero. Both indicators suggest that bullish momentum is building. Immediate resistance is located at the 50-day SMA near $62.65.