Silver Price Analysis: XAG/USD remains bearish despite reclaiming $23.00
- Silver surges over 1% to $23.17, lifted by central bank decisions and declining global bond yields.
- Testing resistance at 100-DMA, with next targets at 200-DMA and 50-DMA for further gains.
- Potential downward shifts could push silver towards support at $22.50, $22.00, and January's low.
Silver price rises late in the North American session as traders digest the latest central bank’s decisions across both sides of the Atlantic. The Federal Reserve and the Bank of England held rates unchanged, and both signaled that the likelihood of cutting interest rates increases as the disinflation process evolves. That tumbled global bond yields and boosted precious metals. The XAG/USD exchanges hands at $23.17, up more than 1%.
The XAG/USD is neutrally biased, but as of writing, it is challenging resistance at the 100-day moving average (DMA) at $23.14. A decisive break could open the door to test the 200-DMA at $23.44, followed by the 50-DMA at $23.55. Further upside is seen once that resistance area is cleared at the psychological $24.00 figure.
However. If Silver slumps below $23.00, that could exacerbate a drop toward $22.50, December 13 low, followed by the $22.00 figure. The next buying zone lies at a January 22 low of $21.93.
XAG/USD Price Action – Daily Chart
XAG/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
