Silver Price Analysis: XAG/USD rejected again from above $24.00

• US Dollar tumbles and then soars after US CPI numbers.
• Volatile session across financial markets, US stocks back in positive ground.
• XAG/USD trims daily gains after being unable to hold above $24.00

Silver prices soared after the release of US inflation data but then pulled back amid a recovery of the US Dollar. XAG/USD peaked at $24.17, the highest level in a week and then pulled back all the way down to the $23.60 zone. It is hovering around $23.75, positive for the day but off highs.

The US Consumer Price Index fell in December 0.1% and the annual rate slowed to 6.5% from 7.1%, reaching the lowest level since October 2021. The number came in line with expectations and contribute to anchor expectations for shift in Federal Reserve rate hike to 25 basis points increments.

US yields tumbled after the report boosting Gold prices that helped also Silver. Following Wall Street’s opening bell market sentiment deteriorated and yields rebounded, triggering a retreat in XAU/USD and XAG/USD.

Silver prices again were rejected from above $24.00. A consolidation above that area could open the doors to further gains. The next resistance is at $24.20 followed by $24.55 (Jan 3 high).

Initial support emerges at the 20-day Simple Moving Average (SMA), near $23.60; below an uptrend line emerges around $23.35. A break below $23.30 could trigger a bearish acceleration, exposing $23.00.

Silver 4-hour chart