Silver Price Analysis: XAG/USD picks strength around $23.50 as US Dollar Index drops

• A decline in the US Dollar Index has shifted traction in favor of Silver price.
• Investors’ risk appetite has improved amid a rebound in S&P500 futures.
• The 200-period EMA is overlapping with the white metal prices, which indicates a lackluster performance ahead.

Silver price (XAG/USD) has rebounded firmly after dropping to near $23.50 in the Asian session. The white metal has extended its recovery above the immediate resistance of $23.60 as the US Dollar Index (DXY) is facing heat amid failing to recapture the critical hurdle of 103.00.

It seems that the risk appetite of the market participants is improving again as S&P500 futures have trimmed the majority of their morning losses. Also, the 10-year US Treasury yields have dropped to 3.53%.

On an hourly scale, the Silver price has sensed buying interest after correcting to near the horizontal support plotted from December 29 low at $23.46. Broadly, the 200-period Exponential Moving Average (EMA) at $23.75 is overlapping with the white metal prices, which is indicating a lackluster performance ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is aiming to shift into the 40.00-60.00 range from the bearish range of 20.00-40.00, which indicates an attempt for a bullish reversal.

For an upside move, the Silver price needs to break above Monday’s high at $24.10, which will drive the asset towards January 3 high at $24.55 followed by the psychological resistance at $25.00.

On the contrary, a declining move below January 5 low at $23.12 will drag the Silver price toward December 19 low and December 16 low at $22.84 and $22.56 respectively.

Silver hourly chart