Silver cuts losses, new test of $ 24.00

• Silver prices have reduced losses and are currently trading below $ 24.00
• For now, gains are capped by the precious metal’s 21 and 50 DMA, which are just above $ 24.00.

Having found support at the November 19 low at $ 23.60, silver prices (XAG / USD) they are again trying to work their way back above $ 24.00. As it stands, silver is trading slightly below $ 23.90, or losing 0.6%.

After falling to its lowest level since September at the beginning of this week from briefly below $ 22.00, Spot Silver is up nearly 9% (from lows).

The bullish argument that accommodative central banks (good for precious metal demand as a hedge against inflation) and low real interest rates for the foreseeable future (as inflation picks up during the recovery, but central banks maintain low interest rates, increasing the attractiveness of precious metals versus fixed income) is likely to continue to provide some support to the precious metals market.

Keep in mind that despite this week’s close to 9% reversal from lows, XAG / USD has yet to erase last week’s heavy losses. To do so, the precious metal will need to convincingly rally above $ 24.00.

Silver struggles to compete with the DMA of 21 and 50 above $ 24.00

Silver spot prices have recovered just below $ 24.00, but the way up is blocked by the 21- and 50-day moving averages, which sit side by side between $ 24.03 and $ 24.05. The precious metal was only able to rise above these levels very briefly early in the session, and has struggled to stay above the 50 DMA for most of the past month (since Pfizer / BioNTech announced the success of their vaccine On the 9th of november).

On the downside, significant support is between $ 23.55-$ 23.64 (the lows of the Asian session on November 9 and 19 and Wednesday). This area is likely to continue to offer decent support, but should it disappear, a quick move back to $ 23.00 cannot be ruled out given the lack of significant support in the interim.

4 hour chart