Silver Price Forecast: XAG/USD holds to gain but stalls around $24.50, tumbles to $24.20s

Silver price extended its gains to three consecutive days, remaining above the 20-day EMA.
Last week low inflation figures in the US spurred speculations that the Fed might hike in 25 bps sizes.
Current week’s US economic calendar to provide fresh impetus to Silver’s price action.

Christian Borjon Valencia FXStreet

Silver Price is registering minimal gains on Monday amidst a dull North American session. The absence of US traders sparked by the Martin Luther King Jr day kept trading liquidity conditions dry. The US Dollar (USD) registered solid gains, capping Silver’s rally around the mid $24.00-$25.00 range. At the time of writing, XAG/USD Is trading at $24.29.

Last week's US data, sparked a repricing for a less aggressive US Federal Reserve

Spot Silver held to its gains after retracing from YTD highs of $24.54. Inflation figures released last week in the United States (US) signal the cycle of high prices has peaked. Hence, this spurred speculations that the US Federal Reserve, among other global central banks, might slow the size of rate hikes, weakening the greenback since the start of 2023.

In the meantime, the World Bank warned that the globe’s Gross Domestic Product (GDP) would jump just 1.7% in 2023, slashing its June forecast of close to 3% in June 2022.

Additional Federal Reserve speakers and a tranche of US economic data led by the Fed speaking alongside the release of earnings in Wall Street would keep traders entertained. US Retail Sales, the Producer Price Index (PPI), and Industrial Production will be released on Wednesday. US Housing Starts, Initial Jobless Claims, and the Philadelphia Fed Index would add to the update on the status of the US economy.

Silver Price Analysis: XAG/USD Technical Outlook

From a daily chart perspective, the XAG/USD remains upward biased. Oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest that Silver buyers remain in charge. If XAG/USD achieves a daily close above $24.29, that would be the third consecutive trading day with gains, and it would poise XAG/USD for a re-test of the YTD highs, followed by $25.00.

XAG/USD

Overview
Today last price	24.26
Today Daily Change	-0.01
Today Daily Change %	-0.04
Today daily open	24.27

Trends
Daily SMA20	23.75
Daily SMA50	22.72
Daily SMA100	20.94
Daily SMA200	21.08

Levels
Previous Daily High	24.3
Previous Daily Low	23.5
Previous Weekly High	24.3
Previous Weekly Low	23.22
Previous Monthly High	24.3
Previous Monthly Low	22.03
Daily Fibonacci 38.2%	23.99
Daily Fibonacci 61.8%	23.8
Daily Pivot Point S1	23.75
Daily Pivot Point S2	23.22
Daily Pivot Point S3	22.95
Daily Pivot Point R1	24.54
Daily Pivot Point R2	24.82
Daily Pivot Point R3	25.34

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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