Silver Price Analysis: XAG/USD surges amidst high US bond yields, strong USD

• Silver is still bullish but could test a four-month-old resistance-turned-support trendline nearby $24.20-40.
• XAG/USD Price Analysis: It’s upward biased, though downside risks remain below $25.00.

Silver price erased its earlier losses that dragged the white metal towards testing February 2 highs at $24.63 per ounce and rallied back above the $25.00 psychological figure. Although the US Dollar (USD) remained underpinned by high US Treasury bond yields, the XAG/USD is trading at $25.25, about to finish Wednesday’s session with gains of 0.28%.

XAG/USD Price Action

Since hitting YTD high at 26.08, the XAG/USD dropped sharply due to the overbought Relative Strength Index (RSI). Therefore, traders moved quickly to book profits, weakening Silver, which tumbled more than 5%. However, as oscillators turned neutral, the XAG/USD bottomed around $24.61, some 20-pips above the 20-day EMA.

For a bullish continuation, the XAG/USD must crack Wednesday’s high at $25.36. Once cleared, the XAG/USD next stop will be the April 17 daily high at $25.60 before posing a threat to $26.00, ahead of the YTD high at $26.08.

Conversely, the XAG/USD first support would be the psychological $25.00 level. A breakout to the downside will expose the 20-day EMA At $24.46, followed by a previously broken resistance-turned-support level at $24.20, as sellers brace towards $24,00. Once cleared, sellers will eye a test of the 50-day EMA at $23.45.

XAG/USD Daily Chart