Silver Price Forecasts: XAG/USD bulls eye $69.00 amid an improved market mood
Thursday’s EuropeanSilver (XAG/USD) retraces previous losses on Friday's European session, returning to levels in the mid-range of the $67.00s at the time of writing. A moderate optimism about a peace deal in Iran and lower US Treasury yields are buoying the yieldless precious metal on Friday, luring bulls into the $69.00 resistance area.
The white metal is drawing support from comments by US President Donald Trump, affirming that the US and Iran reached a “great settlement” for a deal that is likely to be signed “in the next days”. Iranian authorities have shown a somewhat colder stance, although the Foreign Ministry Spokesperson. Esmail Baghadei affirmed in local media that the possibility of a deal is closer than ever before.
In the US. Producer Price Index (PPI) figures, released on Thursday, were mixed. Headline inflation accelerated to its highest level in more than three years, but core inflation remained unchanged, against expectations of further growth. This has triggered hopes that the spillover from energy prices starts to ebb, pushing back hopes of Federal Reserve (Fed) rate hikes.
Technical Analysis: Potential bullish Head & Shoulders
XAG/USD is trading at $67.46, holding a constructive immediate bias. Friday's higher low hints at a potential bullish head & Shoulders (H&S) pattern, a common bottoming formation.
Indicators on intraday chats are supportive. The Relative Strength Index (RSI) in 4-hour charts hovers around the mid-50s, with the Moving Average Convergence Divergence (MACD) in positive territory, hinting at building bullish momentum.
A breach of the weekly high, at $69.03, would confirm the H&S formation and bring previous support zones at $71.05 (reverse trendline) and the $72.10 area (May 28 low) into focus. The H&S's measured target lies right ahead of the June 4 high, in the $75.00 area.
Downside attempts, on the contrary, remain contained above $65.90 (session lows), which, so far, are closing the path towards Thursday's lows at $61.50.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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