Quotes and rates for precious metals Silver vs US Dollar (XAGUSD)

• Silver loses ground for the third straight day and drops to over a two-week low.
• The technical setup favours bears and supports prospects for additional losses.
• A sustained move above the 200-day SMA is needed to negate the negative bias.

Silver (XAG/USD) remains under heavy selling pressure for the third successive day on Wednesday – also marking the fifth day of a negative move in the previous six and drops to over a two-week low during the first half of the European session. The white metal currently trades around the $22.30 region and seems vulnerable to prolonging its recent downfall witnessed over the past two weeks or so.

From a technical perspective, the recent failure to find acceptance above the very important and significant 200-day Simple Moving Average (SMA) and the subsequent decline validate the near-term negative outlook. Moreover, oscillators on the daily chart have just started gaining negative traction and further suggest that the path of least resistance for the XAG/USD remains to the downside.

Hence, some follow-through weakness towards retesting sub-$22.00 levels, or the two-month low touched in January, looks like a distinct possibility. A convincing break below the latter will be seen as a fresh trigger for bearish traders and pave the way for additional losses, dragging the XAG/USD towards the $21.40-$21.35 support zone.

On the flip side, the daily swing high, around the mid-$22.00s, now seems to act as an immediate hurdle ahead of the $22.70-$22.75 region. This is closely followed by the $23.00 round figure, which if cleared decisively might trigger a short-covering rally, though is likely to attract fresh sellers near the 200-day SMA, currently pegged around the $23.30 zone, and remain capped near mid-$23.00, or the monthly peak.

Silver daily chart

• Silver price drops to $22.43, approaching key technical support that may indicate a nearing bottom.
• Technical analysis points to a potential decline toward yearly lows if prices fall decisively below $22, showcasing bearish trends.
• A rebound above $23.00 might steer silver towards challenging the $23.30 resistance level, giving bulls an opportunity for recovery.

Silver price falls to an eight-day low of $22.43, though it appears to have bottomed out at around the $22.40-50 area. The advance of US Treasury bond yields capped the nonyielding metal, with XAG/USD trading at $22.49, down 0.04%.

XAG/USD Price Analysis: Technical outlook

The daily chart portrays that XAG/USD has extended its losses to levels last seen at around mid-February after briefly testing the confluence of the 50, 100, and 200-day moving averages (DMAs) at around the $23.00-$23.30 area. Even though Silver’s price action remains sideways, it’s tilted to the downside, but sellers must step in and drag prices below the $22.00 figure. Once achieved, that would open the door to test the yearly lows of $21.93, the November 13 low of $21.88, and the October 3 low of $20.69.

On the other hand, if XAG/USD buyers lift the spot price above $23.00, look for a re-test of the $23.30 area.

XAG/USD Price Action – Daily Chart

• Silver price rises sharply to $22.70 amid weakness in the US Dollar.
• Easing geopolitical tensions have impacted safe-haven appeal.
• Sticky US core PCE price index data may postpone Fed’s plans of quitting hawkish stance.

Silver price (XAG/USD) recovers sharply to near $22.70 as the US Dollar comes under pressure in the London session on Tuesday. The white metal rises as the US Dollar faces a sell-off due to easing geopolitical tensions.

US President Joe Biden is confident of a ceasefire between Israel and Palestine by next week. The US State Department said there has been progress in negotiations for releasing Israeli hostages.

The US Dollar Index, which represents the Greenback’s value against six rival currencies, extends its correction to 103.70.

This week, investors will focus on the United States' core Personal Consumption Expenditure price index (PCE) data for January, which will provide more insights into the timing of the Federal Reserve’s (Fed) rate cuts. Investors anticipate that monthly core PCE rose sharply by 0.4% from 0.2% in December. The annual core PCE data is anticipated to decelerate to 2.8% from the former reading of 2.9%.

The expectations for a rate cut by the Fed will be postponed if the underlying inflation turns out hotter than expectations.

On Monday, Kansas City Federal Reserve Bank President Jeffrey Schmid said inflation remaining above 2%, tight labor market conditions, and a decent demand outlook indicate that there is no need to rush for rate cuts.

Silver technical analysis

Silver price finds a temporary cushion near the 61.8% Fibonacci retracement (plotted from February 14 low at $21.93 to February 16 high at $23.50) at $22.53 on an hourly scale. The white metal climbs above the 20-period Exponential Moving Average (EMA), which trades around $22.58.

The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, indicating consolidation ahead.

Silver hourly chart

• Silver price dives over 2%, as investors react to higher US Treasury bond yields.
• Failure to hold above the 50-day DMA and $23.00 level triggers extended sell-off towards $21.88 support.
• Potential rebound hinges on reclaiming $22.57, with silver possibly oscillating within a tight range near current levels.
• Read more: Gold price falls as US Treasury yields climb amid weak US Dollar

Silver prices plummeted to a seven-day low during the mid-North American session on Monday, as US Treasury bond yields climbed while traders braced for the release of US inflation figures late in the week. At the time of writing, the XAG/USD exchanges hands at $22.47, down more than 2.05%.

The XAG/USD downtrend has extended as buyers failed to reclaim the 50-day moving average (DMA), which opened the door for a pullback below the psychological $23.00 figure. The downtrend resumed once Silver fell below the February 23 low of $22.57. Yet, a daily close below the latter would cement the bearish bias and open the door for a deeper correction toward the November 13 swing low of $21.88, before extending its losses to the $21.00 figure.

On the other hand, if buyers step in, and XAG/USD posts a daily close above $22.57, look for the grey metal to remain range-bound at around the $22.50-$23.00 area, capped by the DMAs, at around the $23.05-$23.26 range.

XAG/USD Price Analysis – Daily Chart

• Silver struggles to capitalize on Friday’s goodish bounce from the vicinity of the mid-$22.00s.
• Neutral oscillators on the daily chart warrant some caution before placing directional bets.
• A sustained strength beyond the 200-day SMA will shift the bias in favour of bullish traders.

Silver (XAG/USD) meets with a fresh supply on the first day of a new week and erodes a major part of Friday's recovery gains from over a one-week low. The white metal maintains its offered tone around the $22.85-$22.80 zone through the first half of the European session and seems vulnerable to prolonging its recent downfall witnessed over the past week or so.

From a technical perspective, the recent failure to find acceptance above the very important and significant 200-day Simple Moving Average (SMA) and the subsequent decline validates the near-term negative outlook for the XAG/USD. That said, oscillators on the daily chart are yet to confirm a bearish bias, making it prudent to wait for some follow-through selling before positioning for any further near-term depreciating move.

In the meantime, Friday's swing low, around mid-$22.00s, might continue to protect the immediate downside ahead of the $22.30 horizontal support. The next relevant support is pegged near the $21.90-$21.85 zone, or the two-month low touched in January. A convincing break below the latter will be seen as a fresh trigger for bearish traders and has the potential to drag the XAG/USD towards testing the $21.40-$21.35 support area.

On the flip side, the $23.00 round figure now seems to have emerged as an immediate hurdle, which if cleared might trigger a short-covering rally and lift the XAG/USD to the 200-day SMA, currently near the $23.30 zone. This is followed by the monthly peak, around mid-$23.00. A sustained strength beyond the latter will negate the negative outlook and allow the XAG/USD to aim back to reclaim the $24.00 round figure.

The momentum could extend further towards the $24.50-$24.60 region, above which the white metal could target the $25.00 psychological mark.

Silver daily chart

• Silver jumps to $22.93, buoyed by gains on Wall Street and a decline in US Treasury yields.
• Technical analysis suggests a push above $23.00 needed to shift from bearish to neutral outlook.
• Key resistance ahead at 50-day, 100-day, and 200-day SMAs, with potential targets extending to $24.00.

Silver prices advanced in the mid-North American session on Friday amid an upbeat market mood as depicted by Wall Street’s posting gains. That and a drop in US Treasury yields sponsored a leg-up in the grey metal. At the time of writing, the XAG/USD exchanges hands at $22.93, up by 0.86%.

From a technical standpoint, the XAG/USD remains downward biased despite pushing through the $22.90 figure, but it remains shy of shifting neutral. If buyers would like to regain control, they must break stir resistance levels above $23.00. The first level would be the 50-day SMA at $23.08, followed by the 100-day SMA at $23.18. Once those two levels are taken out, the 200-day SMA would appear at $23.27 before rallying toward the next supply level at $24.00.

On the flip side, sellers need to keep XAG/USD’s spot price below $23.00 if they would like to remain in charge. In that event, they could drag Silver toward the February 23 low of $22.57, followed by the February 14 cycle low of $21.94.

XAG/USD Price Action – Daily Chart

• Silver continues losing ground for the third straight day and drops to over a one-week low.
• The technical setup favours bears and supports prospects for a further depreciating move.
• A sustained strength beyond the 200-day SMA is needed to negate the negative outlook.

Silver (XAG/USD) drifts lower for the third successive day on Friday – also marking the fourth day of a negative move in the previous five – and drops to over a one-week low during the first half of the European session. The white metal currently trades around the $22.65-$22.60 region and seems vulnerable to prolong this week's pullback from over a one-month top.

The recent failure to find acceptance above a technically significant 200-day Simple Moving Average (SMA) and the subsequent downfall validates the near-term negative outlook for the XAG/USD. Furthermore, oscillators on the daily chart have just started gaining negative traction and suggest that the path of least resistance for the white metal is to the downside.

From current levels, weakness below the mid-$22.00s has the potential to drag the XAG/USD to the $22.30 horizontal support. Some follow-through selling might expose the two-month low, around the $21.90-$21.85 zone touched in January. Acceptance below the latter will be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to test the $21.40-$21.35 area.

On the flip side, the daily swing high, around the $22.85 region, now seems to act as an immediate hurdle ahead of the $23.00 round-figure mark. A sustained strength beyond the latter could lift the XAG/USD to the 200-day SMA, currently near the $23.30 zone. This is followed by the monthly peak, around mid-$23.00s, which if cleared will negate the negative outlook.

The XAG/USD might then aim to reclaim the $24.00 round figure. The momentum could extend further and allow the white metal to climb towards the next relevant hurdle near the $24.50-$24.60 region en route to the $25.00 psychological mark.

Silver daily chart

• Silver gains strong positive traction on Thursday and climbs back closer to the 100-day SMA barrier.
• The technical setup favours bullish traders and supports prospects for a further appreciating move.
• A sustained move and acceptance below $22.00 is needed to negate the near-term positive bias.

Silver (XAG/USD) builds on the overnight bounce from the 200-hour Simple Moving Average (SMA) support near the $22.75 area, or the weekly low and gains strong positive traction on Thursday. The momentum remains unabated through the first half of the European session and lifts the white metal to the $23.10-$23.15 region.

From a technical perspective, the XAG/USD is currently placed just below the 100-day SMA, which is closely followed by the very important 200-day SMA hurdle near the $23.30-$23.35 zone and the monthly peak, around mid-$23.00 touched last week. A sustained strength beyond the latter will be seen as a fresh trigger for bullish traders and pave the way for the resumption of last week's strong move up from sub-$22.00 levels.

Given that oscillators on the daily chart have just started gaining positive traction, the XAG/USD might then aim to reclaim the $24.00 round figure. The momentum could extend further and allow the white metal to climb towards the next relevant hurdle near the $24.50-$24.60 region en route to the $25.00 psychological mark.

On the flip side, the overnight swing low, around the $22.75 region, now seems to protect the immediate downside ahead of the mid-$22.00s and the $22.30 horizontal support. Some follow-through selling might expose the $22.00 mark. Acceptance below a two-month low, around the $21.90-$21.85 zone touched in January, will be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to test the $21.40-$21.35 support.

The subsequent decline has the potential to drag the XAG/USD further below the $21.00 round-figure mark, towards retesting the October monthly swing low near the $20.70-$20.65 region.

Silver daily chart

Technical levels to watch

• Silver price clings to gains ahead of Fed minutes.
• The confidence of Fed policymakers that inflation is in the right direction has dampened the USD Index’s appeal.
• Silver price is expected to deliver stellar gains amid a Descending Triangle breakout.

Silver price (XAU/USD) turns sideways around $23.15 after a strong recovery in the European session on Wednesday. The white metal clings to solid gains as the US Dollar has shifted to the backfoot AS Federal Reserve (Fed) policymakers are confident that the secular inflationary trend is in the right direction despite a one-time rise in price pressures in January

Mixed action is being observed in risk-perceived assets ahead of the release of the Federal Open Market Committee (FOMC) minutes. While S&P500 futures are under pressure, risk-sensitive currencies have been underpinned against the US Dollar. The US Dollar Index (DXY), which gauges the Greenback’s value against six rival currencies, is slightly above the weekly low of around 103.80.

The FOMC minutes will provide more guidance on interest rates and an in-depth explanation behind the Fed maintaining interest rates unchanged in the range of 5.25%-5.50% for the fourth time in a row.

This week, investors will focus on the preliminary S&P Global Manufacturing and Services PMI for February, which will be published on Thursday. The Manufacturing PMI is forecasted to decrease to 50.5 from 50.7 in January. The Services PMI that represents the service sector, which accounts for two-thirds of the United States economy, is expected to release at 52.0, lower than the prior reading of 52.5.

Silver technical analysis

Silver price rebounds after testing the breakout region of the Descending Triangle chart pattern formed on a daily timeframe near $23.00. The near-term outlook for the white metal has turned bullish as it has comfortably settled above the 20 and 50-day Exponential Moving Averages (EMAs), which trade around $22.80 and $23.00, respectively.

The 14-period Relative Strength Index (RSI) approaches the 60.00 hurdle. A decisive break above the same would trigger a bullish momentum.

Silver daily chart

• Silver rises slightly to $22.99, supported by lower US Treasury yields and a weaker Dollar, boosting demand for precious metals.
• Facing technical resistance at $23.13-15, with the 200-DMA at $23.28 posing a major obstacle for further gains.
• Downside risk if silver breaches $23, eyeing February's lows; success above immediate resistances critical for upward momentum.

Silver clings to minuscule gains late in the New York session on Tuesday, up 0.04%, and is trading at around $22.99 a troy ounce. Falling US Treasury bond yields and the Greenback are the main catalysts for the rise in precious metals, while technical resistance levels capped the XAG/USD upside.

XAG/USD rose briefly toward the confluence of the 50 and 100-day Moving Averages (DMAs) at around $23.13-15 during Tuesday’s session but failed to challenge the 200-DMA at $23.28. As a ‘dark cloud cover’ looms, bears dragged Silver’s price below $23.00, which could open the door to test the February 18 low of $22.80. A breach of the latter will accelerate the downtrend towards the February 15 low of $22.35, followed by the $22.00 figure.

Conversely, if buyers reclaim $23.15, that will open the door for further gains. The first resistance would be the 200-DMA at $23.28, followed by the current year-to-date (YTD) high at $24.09.

XAG/USD Price Action – Daily Chart

• Silver jumps over 2.50%, as lower US bond yields boost appeal.
• Potential 'morning star' formation hints at upside if silver surpasses the $22.94 mark.
• Resistance at $23.08-$23.13 and support at $22.45 and $22.00 critical for next moves.

Silver price surged sharply in Thursday’s session after hitting a daily low of $22.35, as US Treasury bond yields plunged, a tailwind for the grey metal. The XAG/USD trades at $22.92, up by more than 2.50%, with traders eyeing a break of stir resistance.

XAG/USD Price Analysis: Technical outlook

XAG/USD remains neutral to downward bias because it remains below the 100, 50, and 200-day moving averages (DMAs). Nevertheless, a daily close above the February 13 high of $22.94 would form a ‘morning star,’ opening the door for further upside. If buyers reclaim the $23.00 figure, that will open the door to challenge the confluence of the 100 and 50-DMA at around $23.08-$23.13. A breach of the latter, the next stop would be the 200-DMA at $23.29.

Conversely, if the non-yielding metal remains below $23.00, the first support emerges at the February 14 high at $22.45. Once cleared, the next support would be the $22.00 figure, followed by the February 14 at $21.94.

XAG/USD Price Action – Daily Chart

• Silver price seems steady above $22 while US Dollar corrects.
• Fed Goolsbee said one-time persistent inflation is insufficient to temper long-term downtrend.
• The US Retail Sales data will guide the Silver price.

Silver price (XAG/USD) manages to shift its auction above the crucial resistance of $22 in the early European session on Thursday as investors digest that rate cuts by the won’t be announced Federal Reserve (Fed) atleast before June. The expectations of a rate cut by the Fed in the May monetary policy meeting have cooled down significantly on the persistent inflation outlook.

S&P500 futures has generated nominal gains in the late Asian session, portraying a marginal improvement in the risk appetite of the market participants. The US Dollar Index (DXY) has corrected gradually to 104.70 from three-month near 105.00. 10-year US Treasury yields have dropped to 4.24%.

On Wednesday, Chicago Fed Bank President Austan Goolsbee said one bad inflation data could not impact the broader trend, which is that price pressures are coming down to the 2% target. When asked about the timing of rate cuts, Goolsbee said the central doesn’t need to wait to reduce inflation to the 2% target to begin reducing the benchmark rates.

In today’s session, investors will focus on the United States Retail Sales data for January, which will be published at 13:30 GMT. The monthly Retail Sales are anticipated to have contracted by 0.1% after expanding 0.6% in December.

Silver technical analysis

Silver price trades in a Descending Triangle Chart pattern on a daily scale, which indicates a volatility contraction but with a negative bias. The 50-day Exponential Moving Average (EMA) near $23 continues to act as a barricade for the Silver price bulls.

The 14-period Relative Strength Index (RSI) consistently discovers support near 40.00. A slippage below the same would trigger a downside momentum.

Silver daily chart

• Silver adds to the overnight heavy losses and drops closer to a two-month low set in December.
• The technical setup favours bearish traders and supports prospects for further near-term losses.
• Any attempted recovery could get sold into and is likely to remain capped near the $23.50 area.

Silver (XAG/USD) remains under some selling pressure for the second successive day and slides back closer to the YTD trough during the first half of the European session on Wednesday. The white metal currently trades below the $22.00 round figure and seems to extend the depreciating move.

From a technical perspective, the recent repeated failures near the very important 200-day Simple Moving Average (SMA) and a subsequent slide validate the near-term negative outlook for the XAG/USD. Furthermore, oscillators on the daily chart are holding deep in the negative territory and are still away from being in the oversold zone. This, in turn, suggests that the path of least resistance for the white metal remains to the downside.

Meanwhile, some follow-through selling below the two-month low touched in December will expose the $21.40-$21.35 support. The XAG/USD could weaken further below the $21.00 mark and aim to retest the October swing low near the $20.70-$20.65 region.

On the flip side, any meaningful recovery attempt might now confront stiff resistance ahead of mid-$22.00s. A sustained strength beyond, however, might trigger a short-covering rally and allow the XAG/USD to reclaim the $23.00 round-figure mark. The momentum could extend towards the 200-day SMA, currently around the $23.20 area. This is followed by the $23.50 supply zone, which if cleared decisively will negate the negative outlook.

The XAG/USD might then aim to reclaim the $24.00 round figure and climb further towards the next relevant hurdle near the $24.50-$24.60 region en route to the $25.00 psychological mark.

Silver daily chart

Key technical levels to watch

• Silver price trades lackluster around $22.70 as the focus remains on US inflation data.
• Soft inflation data would uplift hopes of early rate cuts by the Fed.
• Silver price is consistently facing pressure from a downward-sloping trendline placed from $24.60.

Silver price (XAG/USD) trades back and forth in a narrow range around $22.70 in the late Asian session on Tuesday. The white metal struggles for a direction as investors await the United States Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT.

S&P500 futures remain on the backfoot in the Tokyo session, indicating a decline in the risk appetite of the market participants. The US Dollar Index (DXY) remains positive but struggles to extend upside above the crucial resistance of 104.25. 10-year US Treasury yields rise to 4.18%.

The US inflation data is expected to impact the outlook for interest rates. As per the CME Fedwatch tool, traders bet for a rate cut by 25 basis points (bps) in May. A significant decline in the inflation data would prompt expectations of an early rate cut by the Federal Reserve (Fed).

In the last monetary policy statement, Fed Chair Jerome Powell ruled out expectations of a rate cut in March as the central bank is unconvinced about inflation declining towards the 2% target. Also, Fed policymakers have not favored aggressive rate cuts as they could increase price pressures again.

Silver technical analysis

Silver price faces pressure while extending recovery above the downward-sloping trendline plotted from December 22 high at $24.60. The asset manages to sustain above the 50-period Exponential Moving Average (EMA) at $22.63, which indicates that the near-term outlook is bullish.

The 14-period Relative Strength Index (RSI) aims to move above 60.00. A bullish momentum would get triggered if the RSI (14) manages to do so.

Silver four-hour chart

• Silver price jumps to $23 despite a decent recovery in the US Dollar.
• Investors await the US inflation data for a fresh outlook on interest rates.
• Fed Logan advised to ensure price stability before considering rate cuts.

Silver price (XAG/USD) climbs to near $23 even though the US Dollar Index (DXY) recovers sharply in Monday’s European session. The outlook for the USD Index improves ahead of the United States Consumer Price Index (CPI) data for January, which will be published on Tuesday.

According to the expectations, the monthly headline CPI grew steadily at 0.2%. In a similar timeframe, the core CPI that excludes volatile food and oil prices rose steadily by 0.3%. The annual headline inflation is anticipated to decelerate to 3.0% from 3.4% in December, while core CPI rose at a slightly slower pace of 3.8% against 3.9%.

Federal Reserve (Fed) policymakers have reiterated that rate cuts are not in the picture until they get enough confidence that inflation will sustainably return to the 2% target. The argument supporting holding interest rates at their current level for longer will strengthen if the inflation data turns out persistent.

On Friday, Dallas Fed Bank President Lorie Logan said there is no need to rush for rate cuts until she is convinced that price stability will be achieved.

The opportunity cost of holding non-yielding assets, such as Silver, increases if the Fed holds interest rates higher.

Silver technical analysis

Silver price rises to near the downward-sloping trendline plotted from December 22 high at $24.61 on a two-hour scale. The white metal stabilizes above the 50-period Exponential Moving Average (EMA), which trades around $22.60. The 14-period Relative Strength Index (RSI) climbs into the bullish region of 60.00-80.000. A sustainability of the same would strengthen the upside bias.

Silver two-hour chart

• Silver gains momentum near $22.80 in Monday’s early European session. 
• The bullish price of silver remains intact above the key EMA. 
• The key resistance level is seen at 23.00; 22.70 acts as an initial support level for the metal.

Silver (XAG/USD) extends its upside above the mid-$22.00s during the early European session on Monday. Traders will keep an eye on the US January Consumer Price Index (CPI) on Tuesday for fresh impetus. If the CPI data confirms the declining inflation trend, it may support the case for rate cuts, which boosts the silver price. XAG/USD currently trades around $22.80, gaining 0.82% on the day.

According to the four-hour chart, the silver price resumes its bullish trend as the metal is above the key 100-period Exponential Moving Averages (EMA). The upward momentum is supported by the Relative Strength Index (RSI), which lies above the 50 midlines. The momentum indicator indicates that further upside looks favorable.

A bullish breakout above the upper boundary of Bollinger Band of $22.85 will see a rally to a psychological round mark and a high of January 25 at 23.00. Further north, the next hurdle is located near a high of February 2 at 23.25. The additional upside filter to watch is 23.53 (a high of January 12), followed by 24.09 (a high of January 2). 

On the downside, the 100-period EMA at 22.70 acts as an initial support level for the metal. A break below the latter will see a drop to a high of February 6 at 22.48. The next downside target is seen near the lower limit of the Bollinger Band at 22.10 and a low of January 22 at 21.92.

Silver four-hour chart

• Silver gains 0.15% to $22.60, buoyed by a softer USD despite higher Treasury yields.
• Indications of bottoming out between $22.15-$22.50, hinting at a potential move towards $23.00.
• Death cross' suggests bearish outlook; fall below support might aim for January low at $21.93, then $20.69.

Silver price prints minimal gains of 0.15% on Friday even though US Treasury bond yields climbed. Nevertheless, the Greenback remains down, a tailwind for Silver prices, which trade at $22.60 after jumping from a low of $22.37.

XAG/USD is downward biased but has bottomed out at around $22.15-$22.50, which has opened the door for an upward correction. If buyers could lift prices toward $23.00 per troy ounce, that could open the door to test the 100-day Moving Average (DMA) at $23.09, followed by the 50-DMA at $23.26.

On the other hand, a ‘death cross’ formed three days ago on the path of least resistance, a bearish signal that could clear the path for further downside. The next support surfaces at the January 22 low of $21.93, followed by the October 23 pivot low at $20.69.

XAG/USD Price Action – Daily Chart

• Silver gains positive traction for the second straight day, albeit lacks follow-through.
• The technical setup warrants some caution before positioning for any further gains.
• A sustained move beyond a descending trend-line is needed for bulls to seize control

Silver (XAG/USD) builds on the previous day's goodish recovery from the $22.15 area, or over a two-week low and trades with a positive bias for the second successive day on Friday. The momentum lifts the white metal to the top end of its weekly range, around the $22.70 region during the first half of the European session, albeit lacks bullish conviction.

From a technical perspective, the commodity's inability to attract any follow-through buying, along with neutral oscillators on the daily chart, warrants some caution for bullish traders and positioning for any further gains. Hence, any subsequent move up is more likely to confront stiff resistance near the $22.85 region, which is closely followed by a descending trend-line hurdle near the $23.00 round figure.

The latter should act as a key pivotal point, which if cleared decisively might shift the near-term bias in favour of bulls and pave the way for a further appreciating move. Some follow-through buying beyond the 200-day Simple Moving Average (SMA), currently pegged near the $23.25-$23.30 zone, will reaffirm the positive outlook and allow the XAG/USD aim back to reclaim the $24.00 round figure.

The upward trajectory could get extended further towards the next relevant hurdle near the $24.50-$24.60 region before the white metal eventually climbs to the $25.00 psychological mark.

On the flip side, the $22.40 horizontal zone now seems to protect the immediate downside ahead of the $22.20-$22.15 area, below which the XAG/USD could retest sub-$22.00 levels or a two-month trough touched in January. Some follow-through selling will expose the $21.40-$21.35 support before the white metal weakens further below the $21.00 mark, towards the October swing low near the $20.70-$20.65 zone.

Silver daily chart

Technical levels to watch

• Silver rebounds from over a two-week low, though the upside seems limited.
• The technical setup supports prospects for the emergence of fresh sellers.
• A move beyond a descending trend-line is needed to negate the bearish bias.

Silver (XAG/USD) stages a goodish recovery from the $22.20-$22.15 area, or over a two-week low touched earlier this Thursday and builds on its steady intraday ascent through the first half of the European session. The white metal climbs to a fresh daily peak, around the $22.40 region in the last hour, though the technical setup seems tilted in favour of bearish traders and warrants caution before positioning for any further appreciating move.

The recent repeated failures near the $23.30 supply zone, which coincides with a descending trend-line hurdle extending from the late December peak, and a subsequent breakdown through a short-term trading range validate the negative outlook. Moreover, oscillators on the daily chart have just started gaining negative traction and are still far from being in the oversold territory. This, in turn, suggests that the path of least resistance for the XAG/USD is to the downside and any further move up might still be seen as a selling opportunity.

From current levels, the $22.80-$22.85 region is likely to act as an immediate hurdle ahead of the $23.00 mark, which now nears the descending trend-line resistance. This is closely followed by the 200-day SMA, near the $23.25-$23.30 supply zone, which if cleared decisively might trigger a short-covering move and set the stage for additional gains. The XAG/USD might then aim to reclaim the $24.00 round figure before climbing to the $24.50-$24.60 resistance zone and aiming to reclaim the $25.00 psychological mark.

On the flip side, weakness below the $22.20-$22.15 area could drag the XAG/USD to sub-$22.00 levels, or a two-month trough touched in January. Some follow-through selling might expose the next relevant support near the $21.40-$21.35 region before the metal weakens further below the $21.00 mark, towards the October swing low near the $20.70-$20.65 zone.

Silver daily chart

Technical levels to watch