Silver Price Forecast: XAG/USD holds gains at multi-year highs above $48.30

LONDON (October 6) Silver (XAG/USD) appreciates for the second consecutive day on Monday, to reach fresh 4-year highs at $48.75, with downside attempts contained so far above last week's highs at $48.30.
Precious metals are thriving on Monday as a combination of a US government shutdown, which looks to be an extended one, expectations of a looser monetary policy in Japan, and the growing political uncertainty in France, have prompted investors to find alternative assets.

Technical analysis: Key resistance lies right above $49.00

From a technical perspective, the pair remains trading higher within an ascending channel from id September lows. The 4-Hour RSI, however, is showing some bearish divergence, which should act as a warning for buyers.

Bulls are likely to be challenged at $ 49.24-$49.30, where the 161.8% of the September 17 to September 24 range meets the top of the ascending channel. Further up, the $50.00 psychological level emerges as the next bullish target..

Downside attempts are being contained above $48.30 (September 3 high) for now. Below here, the 47.60 area (Intra-day support and trendline support, at $46.90 would come into focus.

FXStreet