Silver Price Analysis: XAG/USD bulls have the upper hand above $24.50 hurdle-turned-support

• Silver regains positive traction on Friday and reverses a part of the previous day’s downfall.
• The technical setup remains tilted in favour of bulls and supports prospects for further gains.
• A convincing break below the $23.00 mark is needed to negate the near-term positive outlook.

Silver catches fresh bids on Friday and reverses a part of the previous day's sharp retracement slide from the $25.25 area, or its highest level since May 11. The white metal sticks to its intraday gains through the early European session and currently trades near the daily peak, just below the $25.00 psychological mark.

From a technical perspective, the XAG/USD manages to defend the $24.60-$24.50 strong horizontal resistance breakpoint, now turned support. The said area should now act as a pivotal point, which if broken decisively might prompt some technical selling. Silver might then accelerate the slide towards the $24.00 mark en route to the $23.65-$23.60 support zone and the $23.20-$23.15 region.

The next relevant support is pegged near the $23.00 round figure, which if broken decisively will negate any near-term positive outlook and shift the bias in favour of bearish traders. Some follow-through selling below the $22.75-$22.70 area would reaffirm the negative outlook and make the XAG/USD vulnerable to sliding back towards challenging the multi-month low, around the $22.15-$22.10 area.

Meanwhile, technical indicators on the daily chart are holding comfortably in the positive territory and are still far from being in the overbought zone. This, in turn, favours bullish traders and suggests that the path of least resistance for the XAG/USD is to the upside. That said, it will be prudent to wait for a move beyond the overnight swing high, around the $25.25 area, before placing fresh bets.

The XAG/USD might then aim to surpass the $25.50-$25.55 intermediate hurdle and reclaim the $26.00 round figure. This is closely followed by the YTD peak, around the $26.10-$26.15 area touched in May, which if cleared will set the stage for an extension of the recent upward trajectory witnessed over the past month or so.

Silver daily chart

Key levels to watch