Silver Price Analysis: XAG/USD Bulls Hold Close to Multi-Week Highs Above $23.00

• The price of silver consolidates the strong rise of the previous day and reaches its highest level since February.
• The technical situation favors the bulls and supports the prospects for further gains.
• Any retracement below the 61.8% Fibonacci is likely to attract new buyers and remain limited.

The price of silver (XAG/USD) consolidates its recent strong gains at the highest level since February 3, reached the previous day, and ranges between tepid gains and minor losses during the early part of the European session on Friday. The white metal is currently trading just above the $23.00 level and looks set to extend the run of the past two weeks from the yearly low reached earlier in the month.

This week’s sustained breakout and acceptance above the 61.8% Fibonacci retracement of the recent pullback from a multi-month high lend credence to the constructive outlook. Furthermore, the technical indicators on the daily chart remain comfortably in positive territory and are still far from the overbought zone. This favors the bulls and supports prospects for an extension of the move to the upside.

Therefore, a further move above the round $24.00 level, towards testing the multi-month high around the $24.65 region hit in February, looks like a distinct possibility. Some continuation buying should pave the way for further gains and allow XAG/USD to recapture the psychological $25.00 level for the first time since April 2022. The rally could extend to the next relevant hurdle near the $25.30-zone. $25.35.

On the other hand, dips below the $23.00 level could now find some support near the breakout of the 61.8% Fibonacci resistance around the $21.80 area. Any further decline is more likely to attract new buyers around the $22.50 horizontal zone, which should help limit the fall in XAG/USD near the $22.20 zone, or 50% Fibonacci. Further down below is the $22.00 level, which if broken decisively could set the stage for deeper losses.

silver daily chart

Silver additional technical levels