Silver Price Analysis: XAG/USD dwindles after hitting a 9-month high, back below $23.50

• Silver slumps after reaching a new YTD high at $24.62 and is back below $23.50.
• Gold Price Forecast: XAU/USD erases Wednesday’s gains, plunges below $1,920 post BoE, ECB decisions.
• Silver Price Analysis: Trapped within the $23.00-$24.50 range.

After hitting a new nine-month high of $24.62, Silver price nosedives, failing to break the $23.00-$24.50 range for the fourth consecutive day in the week, and exchanges hands at around $23.40s at the time of writing.

Wall Street continues to record gains bolstered by a big tech company projecting a positive outlook for 2023. The Federal Reserve rate hike of 25 bps weighed on the greenback during Wednesday and Thursday’s overnight session. However, the greenback is staging a comeback, albeit US Treasury yields fall. That has been a tailwind for the white metal, extending its losses toward the bottom of the range.

Silver Price Analysis: XAG/USD Technical Outlook

The XAG/USD is still range-bound, dropped below the 20-day Exponential Moving Average (EMA) at $23.69, which would act as a resistance level in the event of Silver attempting to rally back to $24.00. XAG/USD’s failure to decisively break the previous YTD high at $24.54 could pave the way for a re-test of $23.00, a psychological level. Once cleared, that will put in play the January 23 swing low of $22.76, followed by the December 16 daily low at $22.56.

As an alternate scenario, Silver’s reclaiming $24.00 would open the door for further upside and continuation after one month of consolidation, within the $23.00-$24.50 range. After XAG/USD climbs above the top of the range, the next ceiling would be the YTD high at $24.62, followed by the $25.00 figure.

Silver Key Technical Levels