On Thursday (September 12th), spot silver surged over 4% due to the weakening of the US dollar.analyst Christian Borjon Valencia recently wrote an article analyzing the technical trend of silver prices.

Spot silver closed up 4.21% on Thursday, at $29.86 per ounce. On Friday (September 13th), in the morning session of the Asian market, spot silver continued to rise, briefly breaking the nearly two-week high to $30.04 per ounce, and currently slightly falling back to around $29.90 per ounce.

Valencia wrote that silver prices rebounded significantly on Thursday, with a daily increase of over 4%. Silver prices rebounded from a daily low of $28.54 per ounce to $29.90 per ounce. The overall weakness of the US dollar has driven up silver prices, and the current bullish target is aimed at $30.00 per ounce.

The US Department of Labor released data on Thursday showing that as of the week ending September 7th, the number of initial jobless claims was 230000, an increase of 2000 from the previous reporting cycle and higher than market expectations of 225000.

On Thursday, another data showed that the US Producer Price Index (PPI) rose 1.7% year-on-year in August, lower than the expected 1.8%; The core PPI increased by 2.4% year-on-year, which is also lower than the expected 2.5%.

The US data has intensified people's expectations of the Federal Reserve's first interest rate cut. The US Dollar Index (DXY), which tracks the US dollar against six major currencies, closed down 0.5% on Thursday at 101.24.

The latest technological prospects of silver

Valencia pointed out that from a technical perspective, the "double bottom" pattern supports the upward trend of silver. During the upward trend, silver prices have overcome key resistance levels of $28.99 per ounce on the 50 day moving average (DMA) and $29.20 per ounce on the 100 day moving average.

As depicted by the Relative Strength Index (RSI), the momentum is bullish. Therefore, the path with the least resistance to silver prices tends to rise.

Valencia stated that the first resistance level for silver is $30 per ounce. If it breaks through this level, silver prices will target the August 26 high of $30.18 per ounce, followed by the June 21 high of $30.84 per ounce.

Once the above levels are overcome, the next target for silver prices will be the July 11th high of $31.75 per ounce.

(Daily chart of spot silver)

On the other hand, Valencia added that if bears want silver prices to return to bearish, they need to push the price below $29.00 per ounce.