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Silver is Trying to Continue Rising to the Area of 24.50
3/29/2023 12:01 PMThis week, the quotes of the XAG/USD pair are trying to consolidate above the level of 23.00 in order to continue growing with the target at 24.50 against the background of the correction of the American currency.
Investor interest in precious metals is caused by the development of the banking crisis, which began in the US with the bankruptcy of Silicon Valley Bank and Signature Bank and gradually spread to European financial institutions. The German Deutsche Bank AG is now in a difficult situation, whose shares fell by 14% at the moment, despite the fact that the company announced early redemption of a part of subordinated bonds of the second level. Investors are redirecting their currencies to safe-haven assets, which are traditionally considered to be instruments of the metal group, to minimize risks, although representatives of the world's central banks are making statements about the stability of the financial system. Gold has gained 7.3% since the beginning of March, while silver has gained 10.0%. If the upward trend in precious metals continues, then in the XAG/USD pair, one can expect a new high at the beginning of the year around 24.50.
The long-term trend remains downward; its border passes around 23.00. This week, market participants are trying to consolidate above this level and change the trend, but so far without success. If the level of 23.00 is broken upwards, then the nearest growth target will be the level of 24.50, and if the price returns under the level of 23.00 and consolidates below, then the decline is likely to continue, and the target will be the support level of 21.50.
The medium-term trend is upward. Target zone 2 (23.68–23.49) was reached last week. If during trading this zone is broken out, then the next target for purchases will be target zone 3 (25.58–25.39). While the target zone 2 is not broken, market participants can count on a medium-term correction to the area of the key trend support 21.62–21.43, after which it will be possible to consider new purchases of the instrument with the target at last week's high at 23.50.
Resistance levels: 23.00, 24.50, 26.00. | Support levels: 21.50, 20.00, 18.00.
