Categories: Forex News
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2023-10-26 12:15 PM

Silver Prices Surge, Aiming for New Highs

  • Silver prices in South Africa (XAG/USD) have shown significant resilience, recovering notably from the previous week's decline, and are currently trading around R441.06 ($23.00), indicating a nearly 1% increase for the day.
  • Technical evaluations suggest potential upward challenges for silver, notably around resistance levels of R446.126 ($23.30)-R447.428 ($23.40) and R455.834 ($23.70)-R456.870 ($23.75). However, surpassing these can push the metal towards R460.48 ($24.00) and potentially even R464.844 ($24.20).
  • On the downside, there are protective markers at R437.07 ($22.75) and R433.29 ($22.55). Failure to maintain these levels could see further declines to R428.526 ($22.30)-R427.05 ($22.25) and the crucial R424.4 ($22.00) mark.
By Nonhlanhla

Silver prices (XAG/USD) continue to showcase their strength, making a commendable recovery from last week’s slump that saw figures in the mid-R480.28 ($25.00s). As European trading commenced this Thursday, the precious metal displayed an encouraging upward trend. It appears silver has halted its three-day dip, presently oscillating around the significant R441.06 ($23.00) benchmark, marking an almost 1% increase for the day.

Diving into a more intricate technical evaluation, there’s evidence suggesting that the XAG/USD has been unwavering, especially beneath the 38.2% Fibonacci retracement mark that characterizes the May-October downward trajectory. A further encouraging sign for investors is the fact that daily chart oscillators remain in an optimistic domain, reinforcing the likelihood of the metal’s value climbing higher.

However, potential challenges lie ahead. Any further upward movement is expected to face a robust resistance close to the R446.126 ($23.30)-R447.428 ($23.40) nexus, an amalgamation of the 50% Fibonacci level, along with the 100-day and 200-day Simple Moving Averages (SMAs). Beyond this, the next significant resistance point lies between R455.834 ($23.70)-R456.870 ($23.75). Overcoming this barrier might activate a flurry of short-covering actions, pushing the XAG/USD towards the R460.48 ($24.00) threshold, which aligns with the 61.8% Fibonacci level. Should there be additional buying momentum, the declining trend-line that originates from the high in May, currently situated near R464.844 ($24.20), could be the next target. A decisive surge past this point would undoubtedly ignite enthusiasm among bullish investors, potentially paving the way for a substantial positive shift.

Conversely, any downfall might be cushioned by the 38.2% Fibonacci level, situated close to the R437.07 ($22.75) mark. This acts as a shield against further drops, with the next support being the recent low of approximately R433.29 ($22.55). Should the XAG/USD not sustain these levels, we might observe technical offloading, pulling the value down to the R428.526 ($22.30)-R427.05 ($22.25) range, a previous resistance that has now transitioned to a support. If this decline persists, the R424.4 ($22.00) pivotal mark, equating to the 23.6% Fibonacci level, may come into play.

For South Africans invested in silver, these fluctuations and technical markers offer critical insights into potential future market movements and strategy adjustments. As the global economy continues to experience its ebbs and flows, the silver market in South Africa remains a sector to watch closely.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: Silver