Silver Price Analysis: XAG/USD stabilizes above $23, supported by multiple tailwinds

Silver price seems stable above $23.00 as safe-haven demand remains intact.
The market mood remains downbeat as Israel plans to destroy Hamas's military in Gaza.
Fed Bostic said a slowdown is coming but the economy won’t see a recession.

Sagar Dua FXStreet

Silver price (XAG/USD) managed to shift auction above the crucial resistance of $23.00 in the late European session. The white metal remains firm as the deteriorating situation in Gaza due to deepening conflicts between the Israeli army and Palestine’s military group has strengthened the appeal for safe-haven assets.

The market mood remains downbeat as Middle East tensions are expected to escalate as Israel's defense chief instructed troops to enter Gaza and destroy the Hamas military. Losses in the S&P500 futures deepened in the London session as the third-quarter result season started.

The demand for safe-haven assets has also improved due to neutral guidance from Federal Reserve (Fed) Chair Jerome Powell at New York’s Economic Club. The commentary from Fed Powell indicated that bond yields are sufficiently high and effective to compress overall spending and investment.

Meanwhile, Atlantic Fed Bank President Raphael Bostic said in an interview with CNBC that a slowdown is coming but the economy won’t see a recession. Bostic remains confident that the central bank will get inflation under control. He forecasted that the Fed would cut interest rates in late 2024.

Silver technical analysis

Silver price trades in a Rising Channel chart pattern on an hourly scale in which each pullback is considered a buying opportunity by the market participants. The 50-period Exponential Moving Average (EMA) at around $23.00 continues to provide support to the Silver price bulls. Horizontal resistance is plotted from September 29 high at $23.56.

The Relative Strength Index (RSI) (14) shifts into the 40.00-60.00 range from the bullish range of 60.00-80.00. This indicates that the upside momentum has concluded while the overall trend is still bullish.

Silver hourly chart

XAG/USD

Overview
Today last price	23.17
Today Daily Change	0.09
Today Daily Change %	0.39
Today daily open	23.08

Trends
Daily SMA20	22.22
Daily SMA50	22.92
Daily SMA100	23.3
Daily SMA200	23.33

Levels
Previous Daily High	23.09
Previous Daily Low	22.64
Previous Weekly High	22.82
Previous Weekly Low	21.57
Previous Monthly High	24.82
Previous Monthly Low	22.12
Daily Fibonacci 38.2%	22.92
Daily Fibonacci 61.8%	22.81
Daily Pivot Point S1	22.79
Daily Pivot Point S2	22.49
Daily Pivot Point S3	22.34
Daily Pivot Point R1	23.23
Daily Pivot Point R2	23.38
Daily Pivot Point R3	23.68

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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