Silver Price Analysis: XAG/USD bulls retain control near multi-week high, above $23.00

Silver is seen consolidating its recent strong gains to the highest level since February 03 touched the previous day and seesaws between tepid gains/minor losses through the early part of the European session on Friday. The white metal currently trades just above the $23.00 mark and seems poised to prolong the upward trajectory witnessed over the past two weeks or so, from the YTD low touched earlier this month.

This week's sustained break and acceptance above the 61.8% Fibonacci retracement level of the recent pullback from a multi-month peak add credence to the constructive outlook. Moreover, technical indicators on the daily chart are holding comfortably in the positive territory and are still far from being in the overbought zone. This further favours bullish traders and supports prospects for an extension of the appreciating move.

Hence, a subsequent move up beyond the $24.00 round figure, towards retesting the multi-month peak around the $24.65 region touched in February, looks like a distinct possibility. Some follow-through buying should pave the way for additional gains and allow the XAG/USD to reclaim the $25.00 psychological mark for the first time since April 2022. The rally could get extended to the next relevant hurdle near the $25.30-$25.35 zone.

On the flip side, dips below the $23.00 mark might now find some support near the 61.8% Fibo. resistance breakpoint, around the $21.80 region. Any subsequent slide is more likely to attract fresh buyers around the $22.50 horizontal zone, which should help limit the downside for the XAG/USD near the $22.20 area, or the 50% Fibo. level. This is followed by the $22.00 mark, which if broken decisively could set the stage for deeper losses.

Silver daily chart

Key levels to watch