On Tuesday (September 24th), driven by the weakening of the US dollar, spot silver surged more than 4% and briefly reached the $32.00 per ounce mark. Analyst Christian Borjon Valencia's latest article analyzes the technical trend of silver prices.

Valencia pointed out that silver prices soared to a four month high above $32.00 per ounce. Technically bullish, as the Relative Strength Index (RSI) indicates that silver has the potential to continue rising.

Spot silver closed up 4.58% on Tuesday, at $32.08 per ounce, with a intraday high of $32.26 per ounce.

Valencia wrote that during the North American trading session on Tuesday, silver prices soared, reaching a four month high of $32.26 per ounce, up more than 4%. This is because the decline in the yield of US treasury bond bonds and the weakness of the US dollar pushed silver up.

The Conference Board reported on Tuesday that as concerns about employment and business conditions intensified, American consumers' views on the economy sharply deteriorated in September, with the consumer confidence index hitting its largest decline in over three years.

According to a report by the Chamber of Commerce, the US Consumer Confidence Index plummeted from 105.6 in August to 98.7 in September, marking the largest monthly decline since August 2021. Previously, respondents to the Dow Jones survey generally predicted that the index would be 104.

Poor US economic data has suppressed the US dollar, thereby stimulating a sharp rise in silver prices. The ICE US dollar index closed down nearly 0.6% on Tuesday, at 100.35.

How will the silver price go next?

Valencia pointed out that silver is trending upwards and will continue to climb, challenging the year to date high of $32.51 per ounce. The Relative Strength Index (RSI) is aiming for higher targets, indicating that bulls are getting involved.

Valencia said that if silver prices remain above $32.00 per ounce and break through the high of $32.26 on September 24th, this could pave the way for silver prices to rise to the high of $32.51 per ounce this year. Once it breaks through this level, the next target will be $33.00 per ounce, followed by the high of $35.40 per ounce on October 1, 2012.

(Daily chart of spot silver)

On the other hand, Valencia added that if the silver price falls below $32.00 per ounce, the next support level will be the September 20th high of $31.44 per ounce, followed by testing at $31.00 per ounce.