Silver Price Analysis: XAG/USD climbs back closer to $23.00, over one-week high set on Thursday

Silver gains some positive traction for the second successive day on Friday and climbs back closer to over a one-week top touched the previous day. The white metal currently trades around the $22.85 region, up just over 0.80% for the day, and seems poised to build on its steady intraday ascent amid a modest US Dollar (USD) weakness.

From a technical perspective, the emergence of fresh buying and a sustained move back above the $22.70 confluence resistance add credence to the positive outlook. The said barrier comprises the 200-hour Simple Moving Average (SMA) and the top end of a descending trend channel extending from the August 8 high, which, in turn, should now act as immediate strong support. Some follow-through selling below the daily swing low, around the $22.65 region, however, will negate the positive bias and prompt aggressive selling around the XAG/USD.

With oscillators on the daily chart still holding in the negative territory, Silver might then accelerate the fall back towards testing the multi-month low, around the $22.10 region touched in June. This is closely followed by the $22.00 mark, below which the slide could get extended to the $21.55-$21.50 area en route to the $21.00 round figure. The XAG/USD could then slide to the $20.60 support before dropping to the $20.00 psychological mark.

Meanwhile, technical indicators on hourly charts have been gaining positive traction and support prospects for a further intraday appreciating move. A sustained strength beyond the $23.00 mark will reaffirm the outlook and allow the white metal to challenge the 200-day SMA, currently pegged around the $23.25 region. Some follow-through buying might trigger a fresh bout of a short-covering move and lift the XAG/USD to the $23.60-$23.65 horizontal barrier. The momentum could get extended further and allow bulls to aim to reclaim the $24.00 round figure.

Silver 1-hour chart

Technical levels to watch