Silver Jumps 3.4% to $68 on Dollar Weakness
Silver prices surged past the 100-day moving average, invalidating a bearish technical setup.
Silver prices rose 3.40% on Wednesday to trade at $68.00. The rally came as the US dollar weakened. This move reversed the recent downward trend in the metal.
The price action cleared the 100-day simple moving average at $67.17. This level acted as a key support during the previous drop. The rebound halted the confirmation of a head-and-shoulders pattern.
Technical Structure Shifts to Bullish
The Relative Strength Index has broken above its previous peak. This indicates that buying momentum is returning to the market. Traders are now watching for a push toward higher resistance levels.
The first major resistance sits at the $70.00 mark. A decisive break above this level would target the 200-day moving average at $73.00. Further gains could lead to a test of the $75.00 zone.
Key Support Levels Remain
Bears need the price to fall below $67.18 to resume the downtrend. The next support is the September 8 low at $65.54. A break below this level would expose the $65.00 support line.
The swing low from September 2 stands at $63.32. This level represents the final major support before deeper declines. According to GN auto markets and commodities data, the current volatility remains high.
Industrial Demand Drives Valuation
Silver serves both as a store of value and an industrial metal. It is essential in electronics and solar energy sectors. Its high electrical conductivity makes it critical for these industries.
Price movements often correlate with gold and the US dollar. A weaker dollar typically lifts silver prices. Industrial demand from the US and China also influences the market.
