Silver Price Analysis: XAG/USD once again shows resilience and rebounds from 200-hour SMA

Silver regains positive traction on Thursday and stalls the previous day's retracement slide from over a three-week high - levels just above the $24.00 round-figure mark. The white metal builds on its steady intraday ascent heading into the European session and hits a fresh daily top, around the $23.65 region in the last hour.

From a technical perspective, the XAG/USD, so far, has shown resilience below the 200-hour Simple Moving Average (SMA), which is currently pegged near the $23.45 region and should act as a pivotal point for intraday traders. A convincing break and acceptance below should pave the way for a slide towards testing the $23.00 round figure. The downward trajectory could get extended further towards the next relevant support near the $22.70-$22.65 region, or over a two-month low touched in May.

Meanwhile, oscillators on hourly charts have again started gaining positive traction and support prospects for further intraday gains, though neutral technical indicators on the daily chart might cap any meaningful upside. Hence, any subsequent move up might continue to face stiff resistance and remain capped near the $24.00 mark. That said, a sustained strength beyond might lift the XAG/USD further beyond the $24.25-$24.30 zone and allow bulls to reclaim the $25.00 psychological mark.

Some follow-through buying will suggest that the recent pullback from over a one-year high touched in May has run its course and pave the way for a further near-term appreciating move. The next relevant hurdle is pegged near the $24.35-$24.40 region, above which the XAG/USD is likely to make a fresh attempt towards conquering the $26.00 round figure.

Silver 1-hour chart

Key levels to watch