XAG/USD Silver Price Breaks $79 as Dollar Weakens

Silver prices surged as XAG/USD climbed decisively above $79 per troy ounce, driven largely by a weakening US Dollar (DXY). The article highlights that the $78.50 area had acted as resistance, but sustained buying pressure pushed silver into a higher range. Technical momentum improved as the 50-day moving average turned upward, while COMEX depth data reportedly showed fewer sell orders above $79. A key catalyst is DXY sliding to the lowest level in over a week after the Federal Reserve minutes signaled a more cautious pace for future rate hikes. With silver priced in US dollars globally, a softer dollar typically boosts overseas demand, and moderated US Treasury yields reduce the opportunity cost of holding non-yielding silver. Fundamentals are described as “dual demand”: industrial usage (including solar photovoltaic and electronics) and investment demand (physical bars/coins). The piece also cites a supply deficit of more than 140 million ounces over the past year, arguing that even modest investment buying can tighten the physical market. Traders are given levels to watch: support at $78.20, then $77.50; resistance at $79.80 (July high); and a next target near $81.50 (Q1 high). Near-term direction may hinge on US CPI/PCE data and further Fed communication. Overall, the outlook suggests XAG/USD can extend gains toward $81.50 if the move above $79 holds.