Silver Price Analysis: XAG/USD climbs to multi-week highs, closes in on $15/oz

• XAG/USD bounced from 20-day SMA near 14.25 on Monday.
• Initial hurdle for the pair aligns at 15 ahead of 15.30.

After falling to 14.25 earlier in the day, the XAG/USD pair gained traction supported by the 20-day SMA. The upbeat market mood on slight improvements seen in coronavirus infection and fatality figures on Monday seems to be providing a boost to the pair. As of writing, the pair was trading at its highest level in three weeks at 14.82, adding nearly 3% on a daily basis.

Technical outlook

With Monday's rally, the pair broke above the Fibonacci 50% retracement of the sharp drop witnessed during the first half of March at 14.60, which acted as strong resistance in the last week of the month. With a daily close above that level, the pair could target 15 (psychological level) and 15.30 (Fibonacci 61.8% retracement).

On the downside, 14.60 is now the initial support ahead of 14.25 (20-day SMA/daily low) and 13.90 (Fibonacci 38.2% retracement). Meanwhile, the RSI indicator on the daily chart is edging higher above the 50 mark to suggest that the bullish momentum is building up. 

Silver daily chart

Additional technical levels