Silver Price Forecast: XAG/USD rockets over 4% as bulls target $30.00

• Silver breaks above the 50-DMA at $28.99 and 100-DMA at $29.20, supported by a bullish 'double bottom' formation.
• RSI signals strong momentum, with first resistance at $30.00, followed by targets at $30.18 and $30.84.
• A drop below $29.00 could signal a bearish shift, with key support at this level.

Silver's price rallied sharply on Thursday and gained over 4.30% during the day, trading at $29.90 after bouncing off daily lows of $28.54. The grey metal climbed due to overall US Dollar weakness, even though inflation slightly increased. Nevertheless, a bad jobs report sponsored Silver's leg up.

XAG/USD Price Forecast: Technical outlook

From a technical standpoint, a 'double bottom' formation sponsored the non-yielding advance, clearing on its way north, key resistance at the 50-day moving average (DMA) at 28.99, and the 100-DMA at 29.20.

Momentum is bullish, as portrayed by the Relative Strength Index (RSI). Hence, XAG/USD's path of least resistance is tilted to the upside.

Silver's first resistance would be $30.00. A breach of the latter will expose the August 26 high at 30.18, followed by the Jun 21 peak at $30.84. If surpassed the next stop would be the July 11 high at $31.75.

If bears would like a bearish resumption, they need to drive prices below the $29.00 figure.

XAG/USD Price Action - Daily Chart