Silver prices yesterday closed up by 0.29% at 69543 supported by weaker dollar and a dovish testimony from Federal Reserve Chair Jerome Powell.
Spot Silver prices Above $27 Target $28.90 —$30.40
The Fed’s chief heightened in its semiannual report to Congress the importance of keeping monetarypolicy extremely easyfor the foreseeable future to support the US economy. Adding to the bullish tone were expectations of increased industrial demand as investors bet on a swift global economic rebound.
Spot Silver prices also looks set to continue gaining ground, as price surges away from the trend-defining 55-MA (26.10) and pierces resistance at the January high (27.95).
With the RSI climbing above 60, and the MACD indicator tracking firmly above its neutral midpoint, the path of least resistance seems higher.
Gaining a firm foothold above 29.00 is ultimately required to signal the resumption of the primary uptrend and carve a path to challenge the 50% Fibonacci (30.80).
However, if price slips back below psychological support at 28.00, a short term pullback to the 34-EMA (26.75) could be in the offing.