- Silver prices in South Africa hit a new four-week high before retracting.
- The formation of a gravestone doji suggests a battle between buyers and sellers, resulting in market uncertainty.
- The XAG/USD pair closed the week at $24.26 after reaching a daily high of $24.52, with the $24.49 resistance level playing a crucial role in determining future price movements.
silver prices reached a new four-week high before retracing from those levels to finish the day. The XAG/USD pair experienced a significant surge, signaling bullish momentum in the market. However, the formation of a gravestone doji on the daily chart suggests a potential battle between buyers and sellers, with neither side emerging as the clear winner. This uncertainty is expected to continue into the following week, impacting the price of XAG/USD.
The XAG/USD pair closed the week with a trading price of $24.26, having reached a daily high of $24.52. The technical outlook for XAG/USD indicates a neutral bias in the near term. Although the daily Exponential Moving Averages (EMAs) are positioned below the current spot price of silver, the failure to break market structure above the resistance level of $24.49, which was previously the low on April 25, could keep the price of silver suppressed.
To resume a bullish trend, XAG/USD needs to reclaim the $24.49 level. A successful breakthrough could potentially trigger a rise towards the psychological level of $25.00 per troy ounce. Further upward movement might expose the May 11 high at $25.47 and the May 10 daily high at $25.91.
On the other hand, if XAG/USD fails to break the resistance level of $24.49, it could pave the way for further losses. The pair may potentially decline towards the June 2 daily high at $24.01, followed by the June 8 low at $23.63. A further drop could bring the price closer to the support level at $23.50.
Traders and investors should closely monitor real news events, particularly the upcoming Federal Reserve (Fed) monetary policy decision scheduled for Wednesday. The Fed’s decision could provide direction and impact the silver market, especially after the formation of the doji candlestick pattern on the latest trading day of the week.
In summary, silver prices surged to a four-week high but retraced from those levels, resulting in the formation of a gravestone doji. The battle between buyers and sellers remains undecided, indicating uncertainty in the market. The XAG/USD pair closed the week at $24.26 after reaching a daily high of $24.52. Traders should pay attention to key levels such as $24.49 for potential bullish or bearish moves in the coming week. Additionally, the Federal Reserve’s monetary policy decision could provide further guidance for the silver market.
