XAG/USD Price surges on bullish market sentiment

• XAG/USD starts the week with a 5.24% intraday gain, touching a high of $21.61.
• Technical indicators, such as the RSI(14) and daily 20-SMA, suggest a potential bullish outlook for silver.
• US CPI ex Food and Energy data (Feb) is the critical economic event to be followed on Tuesday.

Daily price movements:

XAG/USD (Silver) opens the day at $20.54, with the precious metal experiencing an intraday gain of 5.24% to trade at $21.61 at the time of press. Silver hits an intraday high of $21.61, indicating a surge in bullish market sentiment.

At the start of the new week, the US Dollar faces significant selling pressure due to market reevaluation of the Federal Reserve’s (Fed) future policy actions after the recent collapse of Silicon Valley Bank (SVB). This also acts as a booster for Silver to climb higher on the day.

Key economic events:

Markets will be monitoring Tuesday’s US Consumer Price Index ex Food & Energy (MoM)(Feb) data to understand better the possible Fed actions on the speed of rate hikes decisions which will affect the US Dollar’s strength.

Technical view:

Technical indicators suggest a potential bullish outlook for XAG/USD silver in the short term. The RSI(14) is currently at 52.93, indicating bullish momentum. The daily 20-SMA is $21.03, indicating that the current price may trend higher. Daily pivot resistance levels for Silver are $20.91, $21.30, and $21.81, while support levels stand at $20.02, $19.52, and $19.13. However, the daily 50-SMA is $22.40, indicating a long-term bearish trend.