Silver Price Analysis: XAG/USD sees modest uptick amid mixed US data
- Silver advances 0.63% to $23.12, reacting to US employment strength and factory orders, countered by slowing business activity.
- XAG/USD's potential bullish push towards $24.00 contingent on reclaiming the 100-DMA at $23.30.
- Downside risks loom if Silver falls below $23.00, with targets at January 4 low of $22.69 and December 13 low of $22.51.
Silver price edged higher on Friday, though it retreated after hitting a two-day high of $23.51 after the release of mixed data from the US. A stronger-than-expected jobs report and a jump in factory orders suggest the economy remains robust. Nevertheless, business activity slowed sharply, approaching recessionary levels. At the time of writing, XAG/USD is trading at $23.12, gaining 0.63%.
The XAG/USD daily chart portrays the grey metal as neutral-biased. The 50, 100, and 200-day moving averages (DMAs) are flat, suggesting there’s indecision among traders. If buyers reclaim the 100-DMA at $23.30, that could pave the way for challenging the confluence of the 50 and 200-DMAs around $23.65. A decisive break would expose the $24.00 figure.
On the other hand, if XAG/USD sellers step in and drag prices from around current levels below $23.00, that would exacerbate a test of the January 4 low of $22.69. Once surpassed, sellers could challenge December’s 13 low of $22.51.
XAG/USD Price Action – Daily Chart
XAG/USD Key Technical Levels
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.
