Silver’s price dropped during the North American session on Monday, courtesy of a broad risk-on mood. China’s economy remains weak despite government efforts to stimulate consumer spending. Therefore, the XAG/USD trades at $31.25, down by over 0.88%.
After edging higher for two consecutive days, the XAG/USD has retreated somewhat, yet it remains above the $31.00 figure.
Momentum favors buyers in the near term, as shown by the Relative Strength Index (RSI), though caution is warranted, as RSI peaked below the latest two troughs.
For XAG/USD to resume its uptrend, bulls must clear the October 11 high at $31.63. If surpassed, the next stop would be the $32.00 figure, followed by the May 29 high at $32.29 and the May 20 at $32.50. Up next would be the year-to-date (YTD) high at $32.95.
Conversely, if sellers move in, the first support would be the $31.00 mark, followed by today’s low of $30.76. Once surpassed, the next stop would be the October 8 low of $30.12, followed by the confluence of the 50-100-day moving averages (DMAs) at $29.75/74.
