Silver prices are back below $ 24.00, still within recent ranges

• Silver prices have fallen back and below $ 24.00 as the USD recovered from previous lows.
• The precious metal continues to trade well within recent intraday ranges and close to its 21-point DMA.

Silver Spot Prices (XAG / USD) have retraced below the $ 24.00 level after a brief trip as high as $ 24.24, the precious metal was unable to stay above its 50-day moving average which sits at $ 24.15. A broad recovery from new yearly lows in the US dollar that saw the dollar index bounce off 90.70 from lows at 90.40 has limited precious metal gains and spot silver is currently trading around 8 cents or 0.3 % lower on the day.

Bad news about Covid-19 comes to the aid of USD

The USD was in dire need of some help as it began to generate new year-to-date lows during Monday’s European morning session and that help appears to have come in the form of a series of not-so-good updates on the Covid-19 front. from Europe and the United States;

Starting with Europe; Germany and the Netherlands will again have national lockdowns until January, and in the UK, London is about to move to the highest level of Covid-19 restriction. More worryingly, the UK Health Minister announced that a new strain of Covid-19, which has already been detected in 1,000 people in London, is loose and is reportedly more virulent. However, the UK Health Minister warned that while this is bad news, there is no evidence to suggest that the vaccines currently being rolled out will not work against this new strain.

Returning to the United States; As Covid-19 infections continue to hit new all-time highs in the country, New York Mayor Bill de Blasio is already talking about putting the city back into another full-scale lockdown. More recently, the Boston Globe reported that the city will close gyms, museums and other businesses to curb the rise of Covid-19.

Profit taking and position adjustment as the end of the year approaches and ahead of what could turn out to be a rather interesting rate decision from the FOMC on Wednesday may also have been in play regarding the USD’s recovery from lows and back to the fixed level on the day. Either way, precious metals appear to have traded heavily based on the USD on Monday.

Silver falls back to the DMA of 21

Spot silver’s 21-day moving average (DMA), currently sitting at $ 23.90, has been like a magnet for price action in recent days, with the 50-day DMA at $ 24.15 acting as solid resistance. . Silver continues to trade well within recent ranges; To the upside, there is decent resistance at the $ 24.30 to $ 24.40 area, while to the downside, the bottom of the recent range comes into play just before the $ 23.50 level.

1 hour chart