Silver Price Analysis: XAG/USD sellers need validation from $24.50 and US Core PCE Price Index

• Silver Price stays defensive after reversing from the highest level in five weeks.
• Failure to cross four-month-old resistance line, nearly overbought RSI teases bears.
• Previous resistance line from late July, bullish MACD signals restrict XAG/USD downside.
• Key DMAs stand tall to challenge Silver sellers; bulls need to cross previous monthly high for conviction.

Silver Price (XAG/USD) remains pressured around $24.60 during the early hours of Thursday’s Asian session, after reversing from a five-week high to print the biggest daily loss of the week.

In doing so, the XAG/USD justifies the overbought RSI and failure to cross a downward-sloping resistance line from May.

It’s worth noting, however, that the bullish MACD signals and the resistance-turned-support stretched from July 20, close to $24.50, puts a short-term floor under the Silver Price.

Hence, the XAG/USD weakness appears elusive unless it stays beyond $24.50, a break of which could quickly fetch the bright metal to the 100-DMA support of around $23.95.

However, a convergence of the 21-DMA and the 200-DMA, close to $23.40 at the latest, appears a tough nut to crack for the Silver bears afterward.

On the flip side, a daily closing beyond the multi-month-old resistance line surrounding $24.80 becomes necessary to reject the bearish bias about the XAG/USD. Even so, the bulls need validation from the previous monthly high of around $25.30 to retake control.

That said, the $25.00 and $26.00 round figures, as well as May’s peak of around $26.20, as extra upside hurdles for the Silver buyers to watch.

Apart from the technical details, the Fed’s preferred inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index for August, will also be important to observe for clear direction, especially amid the latest dovish bias about the Fed.

Silver Price: Daily chart

Trend: Pullback expected