- Silver rises by more than 3% on Thursday, on risk appetite, weaker dollar.
- XAG/USD back above the 20-day simple moving average.
Silver is sharply higher on Thursday, extending the rally that started on Tuesday from $24.47, the lowest since April. During the last sessions, it gained more than 5%. The key trigger of the reversal was a correction, then boosted by an improvement in risk sentiment.
What started as a correction amid profit-taking, turned into a sharp reversal. In a few sessions, silver erased most of the month’s losses. On Thursday, XAG/USD peaked at $25.79, the highest level since July 16.
Also, gold is also up considerably on Thursday, 1.5%. The improvement in risk sentiment also contributed to the rally in commodities. At the same time, the US dollar is falling across the board. The DXY drops 0.60%, losing ground for the fourth consecutive day, at the lowest in a month.
XAG/USD recovered the 20-day moving average and is about to test the 200-day SMA that stands at $25.90. A recovery above $26.00 could clear the way to more gains over the short term. The positive tone will likely remain in place while above $25.40.