Rise limited by DMA of 21 and 50, returns below $ 24.00

• Further weakness in the US dollar has not been enough to push silver spot prices past the $ 24.00 level.
• Prices are consolidating within a range of $ 23.80 to $ 24.20 as markets take a breather from recent big moves.

Silver Spot Prices (XAG / USD) They are trading at a loss of almost 1.0% or just around 20 cents at the beginning of the US trading session, but the precious metal is still in range at $ 24.00.

Silver strives to emulate the gains of gold

The decline in the US dollar has yet to abate, with the dollar index (DXY) on Thursday trading with losses of almost half a percent, meaning the index is down more than 1% for the week. No particular headline or issue can be identified behind the recent fall in the dollar, with vaccine optimism and US fiscal stimulus as a factor, as well as a rekindling of hopes for Brexit (an equal deal conditions, one of the three key points) that has driven the GBP (at the expense of the USD).

Gold is enjoying softer USD conditions and is up 0.5% at $ 1,840. The XAG / USD, however, does not share this joy. Some technical factors appear to be preventing XAG / USD prices from moving higher today;

First of all, silver prices are already up nearly 6% for the week. That compares with gains in gold of less than 3%. Silver, of course, has a higher beta than gold, but it is probably not too surprising to see gold recover slightly after underperforming earlier in the week.

Second, the XAG / USD has more gains locked in, for now, by its 21- and 50-day moving average (DMA). Spot prices currently sit just below the $ 21-24.05 DMA and $ 24.07.50 DMA, and have struggled to rise more than 20 cents above this resistance area in the past 48 hours.

Silver Consolidates Within Recent Intraday Ranges

Silver prices are currently consolidating in the ranges of the last few days. On the upside, the $ 24.30 area has shown strong resistance, limiting price action on Thursday and Wednesday. If this area breaks, further to the upside is the November 20 high just above $ 24.50.

Meanwhile, to the downside, there are some solid areas of support. Most immediate is the $ 23.80 area, which has provided a bottom for price action throughout Wednesday. Below that is the US session low touched early Wednesday around $ 23.65, which also coincides with the November 19 low. Below that is Wednesday’s low at $ 23.55 and the latest Tuesday and Wednesday highs at $ 23.53.

1 hour chart