Silver prices have reached a new year-to-date high at $25.96, but failed to surpass the $26.00 level, which would have provided an opportunity to test last year’s peak of nearly $27.00. As of the time of writing, XAG/USD is trading at $25.76 after dipping to a low of $25.39.
XAG/USD Price Action
The XAG/USD continued its upward trend towards $25.96 after reaching a year-to-date high of approximately $25.66 on Wednesday. Despite failing to surpass the $26.00 level, the XAG/USD is still being dominated by buyers and could reach the April 16, 2022, swing high of $25.87 before attempting to break the $26.00 level again.
If the XAG/USD breaks through the $26.00 level, it could trigger a rally towards the April 18, 2022, high of $26.21 before testing the 2022 yearly high of $26.94. However, if the XAG/USD continues to decline past $25.50, the price of silver could fall back towards the April 5 high of $25.13 before dropping to $25.00.
Although the Relative Strength Index (RSI) indicates that silver is overbought, with a reading above 80, the strength of the uptrend suggests that the asset might consolidate as the RSI exits overbought conditions. The Rate of Change (RoC) is still bullish, although it has signaled a weakening in buying pressure.