Silver: XAG/USD jumps toward 20.00, hits highest since September 2016
- Silver is among to performs on Monday, up more than 2% versus US dollar.
- XAG/USD likely to test 20.00, as bullish momentum remains intact despite overbought readings.
Silver is rising for the second day in a row, and for the sixth time out of the last seven trading days. Price is approaching the psychological level of $20.00. It peaked on Monday at 18.835, the highest level since September 2016.
XAG/USD is holding near the top, with the upside momentum strong despite extreme overbought readings from different technical indicators. Silver continues with the rally that started from below 12.00, back in March, when prices bottomed during the market panic of the coronavirus.
Gold is also higher on Monday, testing the multi-year high area around $1818. While XAU/USD gains 0.50%, XAG/USD soars more than 2%. Considering commodities and currencies, silver is among the best performers.
The uptrend is firm in silver and a test of 20.00 in the near term seems likely. A consolidation above should clear the way to more gains. The next barrier emerges at 20.60,
“Macro uncertainty, negative real interest rates, ample money supply and escalating tension between the US and China should attract strategic investment in gold. Silver will benefit from its cheaper valuation against gold”, explained analysts at ANZ.
Technical levels