Silver Price Analysis: XAG/USD stabilizes above $23

  • The price of Silver seems comfortable above $23.00 as the conflict between Israel and Palestine worsens.
  • Joe Biden maintained “loud and clear” that the US stands with Israel.
  • Silver is trading in an ascending channel pattern where every pullback is considered a buying opportunity.

Silver price (XAG/USD) rises above the crucial resistance of $23.00, which has become support for the bulls. The white metal is strengthening, as the worsening of the conflicts between Israel and Palestine has reinforced the attractiveness of safe-haven assets.

The S&P 500 opens lower amid a cautious environment in the markets. US President Joe Biden’s visit to Israel has intensified fears of Iranian intervention in tensions between Israel and Palestine. Joe Biden maintained “loud and clear” that the US stands with Israel. Additionally, Biden confirmed that the Gaza hospital was bombed by Palestine, not Israel.

Meanwhile, the Dollar Index (DXY) appears well supported near 106.00 as the US economy is resilient despite headwinds from higher interest rates. US retail sales rose 0.7% in September, while investors expected 0.3% growth. In August, retail demand increased by 0.9%. The US Census Bureau noted that demand for automobiles and restaurants remained on the rise.

For more information, investors will focus on Federal Reserve (Fed) Chairman Jerome Powell’s speech scheduled for Thursday. Jerome Powell’s guidance on interest rates will be closely watched.

Silver technical analysis

Silver follows an ascending channel chart pattern where market participants view each pullback as a buying opportunity. The bullish 20-period EMA around $23.00 indicates that the short-term trend is bullish. Horizontal resistance is drawn from the September 22 high at $23.76.

The Relative Strength Index (RSI) (14) is moving towards the bullish range of 60.00-80.00, ensuring further upside in the future.

XAG 2-hour chart

XAG/USD

Overview
Latest price today 23.14
Today Daily Change 0.34
Today’s daily variation 1.49
Today’s daily opening 22.8
Trends
daily SMA20 22.25
daily SMA50 22.91
SMA100 daily 23.31
SMA200 daily 23.33
Levels
Previous daily high 23.01
Previous daily low 22.37
Previous weekly high 22.82
Previous weekly low 21.57
Previous Monthly High 24.82
Previous monthly low 22.12
Daily Fibonacci 38.2 22.77
Fibonacci 61.8% daily 22.62
Daily Pivot Point S1 22.45
Daily Pivot Point S2 22.09
Daily Pivot Point S3 21.81
Daily Pivot Point R1 23.08
Daily Pivot Point R2 23.36
Daily Pivot Point R3 23.72

Source: Fx Street

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