Silver Price Analysis: XAG/USD gains modestly but is not out of the woods
- Silver edges up 0.25% to $22.538, with eyes on upcoming US inflation data.
- Break above $22.73 could aim for $23.00, facing resistance at 100 and 200-DMAs.
- XAG/SD risk of a drop below $22.20, with $21.93 as critical next support.
Silver price prints modest gains in the mid-North American session, as US Treasury bond yields drop sharply, as traders await next week’s inflation report out of the United States. At the time of writing, XAG/USD exchanges hands at $22.538, up 0.25%.
The non-yielding metal stays reluctant to crack below the $22.20 area for the second straight day as buyers lift XAG/USD toward the $22.50 area. Nevertheless, failure to conquer that level could keep Silver prices range-bound within the $22.00-$22.50 area ahead of crucial data.
If buyers extend their gains past the February 5 high at $22.73, that will open the way to challenge $23.00. Further upside levels emerge with the 100-day moving average (DMA) at $23.12 and the confluence of the 200 and 50-DMA at $23.40.
On the other hand and the path of least resistance, if sellers emerge and push prices below $22.20, look for a challenge of the January 22 year-to-date (YTD) 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.
