Silver Price Forecasts: XAG/USD rises beyond $87.00 after a two-day selloff
Silver reaches levels beyond $87.00 after bouncing from one-month lows below $72.00
Precious metals are bouncing up on Tuesday, amid an improved market mood.
XAG/USD’s bulls are likely to be challenged at the $88.00-$90.00 area.
Silver (XAG/USD) shows moderate gains on Tuesday, trading at $87.05 at the time of writing. The white metal found some footing after plummeting more than 30% in the previous two trading days, hitting one-month lows right below the $72.00 line.
Contrary to their usual behaviour, precious metals are recovering on Tuesday amid a brighter market sentiment. A trade deal between the US and India and news about upcoming nuclear talks with Iran have improved investors' mood and are boosting demand for risky assets.
Technical Analysis: XAG/USD immediate resistance is at $88.00
XAG/USD has trimmed some losses, but technical indicators are still at levels highlighting a bearish momentum. The Moving Average Convergence Divergence (MACD) remains below the Signal line and the zero mark, while the negative histogram contracts toward zero. The Relative Strength Index (RSI) edges higher, hinting at ∑ unwinding negative pressure, but remains below the key 50 level.
On the upside, the pair is likely to meet resistance at Monday's highs, in the $88.00 area. A confirmation beyond here would shift the focus towards the $100.00 round level and the intra-day resistance in the $104.00 area.
Support levels are at the $71.37 monthly low and below here, the early December highs, and mid-December lows in the $60.00 area.
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