Silver is floating in a critical supply area on the daily chart.
The bulls are eyeing 24.00 while the bears are eyeing a correction back to test the 38.2% Fibo.
Silver prices have suddenly been chasing gold prices higher, but this is not fully explained, at least as far as gold’s fundamental gold rush goes. US Treasury yields have fallen from near two-year highs on 2-year and 10-year bonds.
As a result, the greenback is pulling back, which may explain some of the moves in precious metals, but the speed and distance that gold and silver have moved are outside of the average ranges we’ve seen recently. Nonetheless, silver has entered a supply area as follows:
XAG/USD daily chart
The price has reacted several times in the 24 area in the past, so the bulls are likely to have a hard time conquering it. As it stands, the 38.2% Fibonacci retracement level matches the previous day’s high, so this could be convincing support for the sessions to come.
