Silver Price Forecast: XAG/USD approaches $54.00 amid US Dollar’s weakness

LONDON (November 27) Silver reaches highs above $54.00, aiming at November's peak, near $54.40. The precious metal is drawing support from lower US Yields as Fed easing hopes grow. XAG/USD appreciates 7% in a four-day rally this week.

Silver (XAG/USD) trades higher for the fourth consecutive day on Thursday. The precious metal reaches levels a few pips below $54.00 on the early European session, favoured by a softer US Dollar as investors remain confident that the US Federal Reserve will cut rates in December.

US macroeconomic data released on Wednesday beat expectations, with Durable Goods Orders increasing beyond forecasts and jobless claims dropping to a seven-month low. Futures markets, however, keep pricing an 85% chance of a quarter-point rate cut in December, and further easing next year, which keeps US Treasury yields and the US Dollar on the defensive.

Technical Analysis: Bulls aim for the $54.40 level

XAG/USD 4-Hour Chart

The technical picture is strongly bullish, after a more than 7% appreciation this week. The Relative Strength Index  (RSI) in 4-hour charts has reached overbought levels, but the Moving Average Convergence Divergence (MACD) remains firm, printing green bars in the histogram, which highlights the bullish momentum.

Bulls are focusing on the November 13 highs, at the $54.40 area, ahead of the long-term high, near $55.00, hit in mid-October. Further up, the 261% Fibonacci extension of the November 21-25 rally is at the $56.60 area.

On the downside, Thursday's high near 53.50 is likely to provide some support in case of a bearish reversal. Further down, the intraday low is at the $52.75 area, ahead of the November 25 low, near $50.65.

FXStreet