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market analysis
Silver prices fell from 14-year highs, and bulls took profits?
Wonderful introduction:
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Review]: Silver prices fell from 14-year highs, are bulls taking profits?" Hope it will be helpful to you! The original content is as follows:
On Thursday (September 4), the price of spot silver fell slightly. As can be seen from the spot silver chart, the price of silver climbed to above $41.40 per ounce yesterday. The last time silver reached this price was in September 2011. The rise in spot silver is due to the surge in gold prices to record highs.
In addition, Goldman Sachs analysts released their mid-year gold price forecast for 2026, according to which spot gold may rise to the following levels:
In the benchmark scenario, it will rise to $4,000;
If 1% of the funds in the US private treasury market flow into the gold market, it will rise to $5,000. This scenario means that the Fed's independence may be lost, inflation levels may rise, and the US dollar's position as the so-called "reserve currency" may weaken.
Technical Analysis
By analyzing the fluctuations of spot silver, two upward channels can be identified:
Medium-term channel (noted in red): formed and continued to operate since early summer this year;
Short-term channel (noted in purple): reflects the growth trend of silver demand in the past two weeks.
In this context, it is obvious that silver has touched the resistance range formed by the upper rails of these two channels. For medium- and short-term traders, this signal indicates that spot silver may be in a state of "overvalued valuation", which may trigger a round of long profit-taking and closing market conditions.
Signals of weak demand include:
There is bearish divergence in the relative strength index (RSI);
The silver price has dropped sharply from the upper track of the channel (marked at the red arrow).
The multi-head may be in the middle track of the purple channel andFind support at the lower rail position.
Based on the above analysis, we can infer that the purple channel may still support the upward momentum of silver by inertia; at the same time, the silver price may form a bearish reversal pattern near the upper track of the red channel (such as a double-top pattern), and may then pull back to the psychologically significant US$40 mark - this position has previously experienced an imbalance in the buyer's strength (i.e., the buyer's demand is concentrated). On Thursday (September 4), the price of spot silver fell slightly. As can be seen from the spot silver chart, the price of silver climbed to above $41.40 per ounce yesterday. The last time silver reached this price was in September 2011. The rise in spot silver is due to the surge in gold prices to record highs.
In addition, Goldman Sachs analysts released their mid-year gold price forecast for 2026, according to which spot gold may rise to the following levels:
In the benchmark scenario, it will rise to $4,000;
If 1% of the funds in the US private treasury market flow into the gold market, it will rise to $5,000. This scenario means that the Fed's independence may be lost, inflation levels may rise, and the US dollar's position as the so-called "reserve currency" may weaken.
Technical Analysis
By analyzing the fluctuations of spot silver, two upward channels can be identified:
Medium-term channel (noted in red): formed and continued to operate since early summer this year;
Short-term channel (noted in purple): reflects the growth trend of silver demand in the past two weeks.
In this context, it is obvious that silver has touched the resistance range formed by the upper rails of these two channels. For medium- and short-term traders, this signal indicates that spot silver may be in a state of "overvalued valuation", which may trigger a round of long profit-taking and closing market conditions.
Signals of weak demand include:
There is bearish divergence in the relative strength index (RSI);
The silver price has dropped sharply from the upper track of the channel (marked at the red arrow).
The bulls may find support in the middle and lower rails of the purple channel.
Based on the above analysis, we can infer that the purple channel may still support the upward momentum of silver by inertia; at the same time, the silver price may form a bearish reversal pattern near the upper track of the red channel (such as a double-top pattern), and may then pull back to the psychologically significant US$40 mark - this position has previously experienced an imbalance in the buyer's strength (i.e., the buyer's demand is concentrated).
The above content is all about "[XM Foreign Exchange Market Review]: Silver prices fell from 14-year highs, and longs took profits?", which was carefully xmspot.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!
Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues:
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