Silver Price Analysis: XAG/USD sticks to gains above $24.00, eyes multi-month top set in January

Silver scales higher for the third successive day and touches a fresh weekly high on Thursday.
The formation of a rectangle on the daily chart warrants caution before placing directional bets.
The technical setup, however, favours bulls and supports prospects for an eventual breakout.

Haresh Menghani FXStreet

Silver builds on this week's move up from sub-$23.00 levels and gains some follow-through traction for the third successive day on Thursday. The white metal steadily climbs to $24.30 horizontal resistance during the early European session and moves well within the striking distance of the multi-month top touched in January.

Looking at the broader picture, the XAG/USD has been oscillating in a familiar trading range over the past one-and-half month or so. The price action, meanwhile, constitutes the formation of a rectangle pattern on the daily chart and points to indecision among traders. This, in turn, warrants caution for aggressive traders and before positioning for a firm near-term direction.

That said, positive technical indicators on the daily chart favour bulls and support prospects for an eventual breakout to the upside. A sustained strength beyond the trading range resistance, around the $24.50-$24.55 region, will reaffirm the constructive outlook. The XAG/USD might then aim to reclaim the $25.00 psychological mark for the first time since April 2022.

Some follow-through buying has the potential to lift the XAG/USD towards the next relevant hurdle near the $25.35 region en route to the $26.00 round figure.

On the flip side, the $24.00 mark now seems to protect the immediate downside. Any subsequent pullback might continue to attract some buyers near the $23.50-$23.45 region, below which the XAG/USD could slide to the $23.00 level. This is followed by support near the $22.75 region, which if broken decisively will expose the next relevant support near the $22.20-$22.15 zone.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	24.12
Today Daily Change	0.12
Today Daily Change %	0.50
Today daily open	24

Trends
Daily SMA20	23.75
Daily SMA50	23.37
Daily SMA100	21.62
Daily SMA200	21.02

Levels
Previous Daily High	24.04
Previous Daily Low	23.37
Previous Weekly High	24.3
Previous Weekly Low	22.76
Previous Monthly High	24.55
Previous Monthly Low	22.76
Daily Fibonacci 38.2%	23.78
Daily Fibonacci 61.8%	23.62
Daily Pivot Point S1	23.57
Daily Pivot Point S2	23.13
Daily Pivot Point S3	22.89
Daily Pivot Point R1	24.24
Daily Pivot Point R2	24.48
Daily Pivot Point R3	24.91

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD stays offered, breaks below 1.1400…again

EUR/USD adds to Tuesday’s slight losses and drops below the 1.1400 yardstick in the latter part of Wednesday’s NA session. The pair’s decline comes in response to the persistent recovery in the US Dollar, which seems to have met extra support following the cautious tone from Fed’s Warsh in his comments at the ECB Forum.

Gold recovers but sellers hold the grip

Gold keeps the bullish performance in place on Wednesday, although is now giving away part of its earlier advance past the $4,100 mark per troy ounce. The precious metal’s marked rebound comes despite the US Dollar’s bid bias, higher US Treasury yields across the curve and positive headlines from the Middle East.

Morpho surges as Standard Chartered projects $60 price by 2030

Standard Chartered has initiated coverage of decentralized finance lending protocol Morpho, forecasting its native token could reach $60 by the end of 2030 as the sector expands and institutional adoption of onchain finance accelerates.

Warsh stays on message as inflation remains the Fed's top priority

At the ECB Forum in Sintra, Fed Chair Kevin Warsh largely followed the script, offering little to change the market’s current view on monetary policy.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.