Silver rallied more than 3% to a new high in more than a week, analysts: resistance near the next target of 30.84

foreign exchange trading platform- On Wednesday (July 3), spot silver surged more than 3% and has broken through the $30.00/ounce mark. FXStreet analyst Christian Borjon Valencia wrote a new article on the technical trend of silver prices.

Silver prices surged on Wednesday, breaking through a key resistance trend line around $30 an ounce and briefly rising to an eight-day high of $30.66 an ounce, Valencia wrote. As silver prices broke through the downside channel, the technical side showed a strong uptrend.

Spot silver rose 3.31% on Wednesday to close at $30.48 an ounce; the highest intraday silver price hit $30.668 an ounce, the highest since June 21.

On Wednesday, weaker-than-expected U.S. economic data increased bets that the Federal Reserve could cut interest rates in September, hitting the dollar and spurring a surge in silver prices.

As of the week of June 29, the number of initial jobless claims in the United States after adjustment was 238,000, higher than the 234,000 expected by the market. As of the week of June 22, the number of continuing jobless claims in the United States after adjustment was 1.858 million, higher than market expectations and a new high since November 2021.

The ADP employment report, known as "small non-farmers", showed that private sector employment rose by 150,000 in June, falling for the third consecutive month and hitting the lowest level since January, below the 163,000 economists had expected.

In addition, the U.S. ISM non-manufacturing index fell sharply to 48.8 in June, the lowest level since May 2020, indicating a contraction in the services sector.

The dollar index closed down 0.33% at 105.35 on Wednesday, after falling sharply to 105.05 during the session.

How will silver go after its rise?

Valencia noted that the upside trend for silver remains in place, and that silver prices have overcome the top of the downside channel, which opens the door for further gains. Buyers remain hopeful that the "double dip" chart pattern will be confirmed, and they are eyeing the next possible upside target at $30.84/oz, the cycle high of June 21. Once this hurdle is overcome, the next target will be the year-to-date high of $32.51/oz.

(Daily chart of spot silver)

On the downside, if silver prices fall below $30.00 per ounce, the next support level will be the July 3 low of $29.48 per ounce, followed by $29.00 per ounce.

Once the silver price falls below the June 26 low of $28.57 an ounce, it is expected to fall further. A drop below this level could send the silver price down to the April 15 low of $27.59 an ounce. The above is the analysis of the market on the foreign exchange trading platform. If you are interested, you can continue to pay attention.