XAG\/USD rose by 0.24% on Friday, set to conclude the week with a gain exceeding 3.5%. The price has climbed more than 6% from the July 31 low, confirmed by a bullish harami pattern after surpassing the July 31 high of $37.26. <\/p>\n
Silver’s price advanced for the fourth consecutive session, aiming to finish above $38.00 per troy ounce and near the weekly high of $38.50. A weaker US Dollar and increased speculation about Federal Reserve rate cuts supported the metal\u2019s progress.<\/p>\n
XAG\/USD is trading with daily gains of 0.24%, poised to end the week over 3.50% higher.<\/p>\n
Positioned just $1.50 shy of the yearly high, Silver tested the 50-day Simple Moving Average of $36.20 on July 31. The price has since rallied over 6%, crossing the 20-day SMA at $38.06, indicating an upwards momentum.<\/p>\n
Breaking the $39.00 mark is vital to testing the YTD high of $39.52, before challenging $40.00. Despite the bullish trend, a drop below $38.00 could see prices fall back towards $37.00, targeting the 50-day SMA at $36.85.<\/p>\n
With silver gaining for the fourth straight day, we see a clear bullish trend emerging. This is largely driven by a weakening US Dollar, which has now dropped to a three-month low around 101.50 on the US Dollar Index (DXY). The market is increasingly pricing in a Federal Reserve rate cut for September.<\/p>\n
For derivative traders, this suggests positioning for further upside in the coming weeks. Buying call options with strike prices at or above the $39.52 year-to-date high, such as the $40.00 psychological level, could be a primary strategy. Recent data from the CME FedWatch Tool now shows a 75% probability of a 25-basis-point rate cut next month, which would likely fuel another leg up.<\/p>\n
We must also watch the $38.00 level closely as it now represents initial support. A decisive break below this mark could signal a short-term reversal, making protective put options with a $37.50 strike a reasonable hedge for long positions. This would align with a potential pullback toward the 50-day moving average, now near $36.85.<\/p>\n
Confidence in this upward move is reinforced by physical demand signals. We have seen iShares Silver Trust (SLV) add over $500 million in net inflows just last week. This investment demand is complemented by projections for a 15% rise in silver use for solar panel manufacturing this quarter.<\/p>\n
From a historical perspective, the current price action is reminiscent of the market conditions back in late 2010. After breaking through similar technical and psychological barriers, silver began an accelerated rally toward its highs near $50.00 in early 2011. While not a guarantee, it shows the explosive potential once key levels are cleared.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver climbs for fourth session, driven by weaker USD and rate cut hopes, nearing yearly high.<\/p>\n","protected":false},"author":62,"featured_media":16980,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-28671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/28671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=28671"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/28671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16980"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=28671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=28671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=28671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}