The US Dollar finally eased up for the first time this week, allowing Silver to surpass the $26 mark and looks set to break past the support level above $26.20. However, the Greenback is still considered a safe-haven currency, and this gives it power in the current market.
Silver Trades Above $26 Again
The XAG/USD pair has experienced a wild ride so far this week. The pair has been moving between the $25 and $26 regions for most of the week. XAG/USD pair closed yesterday, trading below $26 after rallying past that level during the Asian trading session.
However, that didn’t happen today, as Silver looks to be in control at the moment. After opening the day at $25.931, Silver has stayed above the $26 since the Asian trading session through the start of the North American session.
At the time of this writing, the XAG/USD pair is well above the 26.00 mark and is targeting the 26.20 level soon. The technical indicators show that Silver is recovering from lower levels and could regain some of its earlier positions.
Sustained Rally Could Push XAG/USD Past $26
The XAG/USD pair could be looking to reclaim the previous highs above $27. However, the precious metal would need to embark on a sustained run for that to happen. The problem is that the Greenback is performing excellently at the moment and might not easily lose out.
The US Fed’s Monetary Policy Report showed that the upside risks to the inflation outlook in the near term have increased. However, this news didn’t reflect that much in the US Dollar’s performance, an indication of how strong the Greenback has become as a safe haven currency.
If Silver continues its upward momentum, an upside towards the $26.45-50 region could happen over the next few trading sessions. A sustained rally beyond this level will set up the commodity to reach the $26.75-80 region.