Listen to the latest market mood for the XAGUSD pair.

The longer-term bullish picture for gold and silver remains in place as central banks around the world have cut interest rates. With bonds offering a low yield, equities uncertain after a great run from March lows, and the world in a grip of a recession metals like gold and silver have historically done well.

We reported yesterday that with silver breaking out of a trend line on the weekly chart more gains may be ahead. Those gains were immediately materialised as silver-headed into key overhead resistance at around the 20.30-20.50 region. Buyers from yesterday should take profit at this level or at least move the stop to break even.

Re-entries can be considered from pullback as marked on the chart.

Swing trade outlook – We expect this trade to play out over the next 2-4 weeks.

Trade Risks: If silver has a weekly close on Friday below $19 then technically the pair has lost its bullish perspective.