Silver experienced a 0.79% decline after reaching a daily peak of $27.73, as another inflation report from the United States revealed higher-than-anticipated inflation. Despite the decrease in US Treasury yields, driven by a robust US Dollar, the grey metal failed to capitalize on the opportunity. As of the time of writing, XAG/USD is trading at $27.21.
Technical analysis suggests that despite the retracement, the uptrend for XAG/USD remains intact, with dips presenting buying opportunities for investors. Over the past four trading days, sellers have struggled to push prices below the 50% Fibonacci retracement level at $27.05, calculated from the swing low at $24.34 to the recent high at $29.76.
In the event of a bullish continuation, breaching the $28.00 mark would open the path for further upside momentum. The initial resistance lies at the 23.6% Fib retracement level at $28.48, followed by the psychological level of $29.00. Subsequently, the year-to-date (YTD) high at $29.76 forms the next significant supply area.
Conversely, bears may find relief if XAG/USD drops below the 50% Fib retracement at $27.05, followed by the 61.8% retracement level at $26.41. Further downward movement could lead to a test of the confluence zone formed by the 50-day moving average (DMA) and the 78.6% Fib retracement level at $25.50.
