Silver Price Analysis: XAG/USD Pulls Back From Multi-Day Highs, Remains Bullish

• The silver fights you return on $24.00, it faces difficulties.
• The technical situation favors the bulls and supports the prospects for further gains.
• A convincing break below the $23.00 signal is needed to nullify the positive outlook.

Silver is supported by Friday’s nice bounce from the vicinity of $23.00 and gains some traction on the first day of a new week. However, the white metal fails to break above $24.00 and pulls back from the three-day highs reached during the first half of the European session.

XAG/USD, for its part, manages to defend the 100 SMA on the 4-hour chart, around the $23.70 area, and the technical setup seems to continue leaning in favor of the bulls. The outlook is bolstered by positive oscillators on the hourly and daily charts. That being said, it will still be prudent to wait for sustained strength above $24.00 before positioning for any further appreciation.

XAG/USD could then try to clear an intermediate hurdle near the $24.25 zone, followed by the month-high around the $24.50/$55 zone reached last week. Further buying above this latter zone will be seen as a new trigger for bullish traders and push spot prices higher, driving towards the psychological $2,500 level for the first time since April 2022.

On the other hand, the $23.20 to $23.10 area appears to have emerged as immediate support ahead of the $23.00 round figure. A convincing break below could drag XAG/USD towards the $22.60/$55 zone, on its way to the next relevant support near the $22.10/00 horizontal zone. Failure to defend this last zone will signal a breakout and set the stage for further depreciation in the near term.

Silver 4 hour chart

key levels