Silver Price Analysis: XAG/USD rally as buyers reclaim the 200-DMA

Silver prices sharply rise to $23.40, up 1.47%, following a soft US inflation report fueling expectations of a pause in Fed rate hikes.
The metal tests the 200-day moving average at $23.26, potentially extending gains towards $24.00 if the bullish momentum sustains.
A failure at the 200-DMA could trigger a pullback towards the 20-DMA at $22.89 and the 50-DMA at $22.64.

Christian Borjon Valencia FXStreet

Silver price climbs on Wednesday, following last Tuesday’s soft US inflation report, which sent US Treasury bond yields plummeting on expectations the US Federal Reserve is done hiking rates. Hence, the XAG/USD advances sharply, reaching key resistance levels like the 200-day moving average (DMA) at $23.26. If Silver bulls hold price above the latter, the uptrend would likely continue toward year’s end, as buyers target $24.00. The XAG/USD is trading at $23.40, up 1.47%.

From a daily standpoint, the grey metal is neutrally biased, though about to shift neutral-upwards if buyers reclaim the latest cycle high seen at $23.69, October 20 daily high. Upside risks remain above that level, with a seven-month-old resistance trendline at $23.80-90, before challenging $24.00 a troy ounce.

On the other hand, if XAG/USD couldn’t remain above the 200-DMA, that could exacerbate a pullback toward the 20-DMA at $22.89, before sliding to the 50-DMA at $22.64 before challenging the November 13 swing low of $21.88.

XAG/USD Price Analysis – Daily Chart

XAG/USD Technical Levels

XAG/USD

Overview
Today last price	23.43
Today Daily Change	0.32
Today Daily Change %	1.38
Today daily open	23.11

Trends
Daily SMA20	22.87
Daily SMA50	22.66
Daily SMA100	23.19
Daily SMA200	23.26

Levels
Previous Daily High	23.19
Previous Daily Low	22.3
Previous Weekly High	23.26
Previous Weekly Low	22.19
Previous Monthly High	23.7
Previous Monthly Low	20.68
Daily Fibonacci 38.2%	22.85
Daily Fibonacci 61.8%	22.64
Daily Pivot Point S1	22.54
Daily Pivot Point S2	21.98
Daily Pivot Point S3	21.65
Daily Pivot Point R1	23.43
Daily Pivot Point R2	23.76
Daily Pivot Point R3	24.32

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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