Is it possible for the price of SILVER to reach $26? LONG IDEA

7 Apr 2023

Over the last few days, the price of silver (XAG/USD) has been fluctuating around $25.00. After reaching a one-year high on Wednesday, the value has retreated and remained relatively stable during Good Friday's inactive Asian session, hovering around $24.95. Despite this, the precious metal remains in a good position for a fourth consecutive weekly gain.

Market signals in the options market suggest a positive trend. For instance, the one-month risk reversal (RR) for the silver price, which measures the spread between the call and put options, registered a slight daily decline of -0.1000 at the end of Thursday's North American session. Nevertheless, it is worth noting that the weekly RR has increased for four consecutive weeks, reaching 0.2000 in the latest data. Additionally, the options market signals for April are also strong after experiencing the most significant gains in a year in March.

Despite the positive signals in the options market, the Good Friday holiday could limit the XAG/USD movements ahead of the highly anticipated Nonfarm Payrolls (NFP) report.