Silver Price Analysis: XAG/USD recovers early lost ground, seems poised to climb further

NEW YORK (Dec 8) Silver price (XAG/USD) is displaying a sideways auction profile around the immediate hurdle of $22.60 in the early European session. The white metal has turned balance after correcting from the critical resistance of $22.80. The market mood is extremely quiet as investors are awaiting a potential trigger for fresh impetus.

Meanwhile, the US Dollar Index (DXY) is struggling to cross the critical hurdle of 105.40. S&P500 futures are displaying a subdued performance following Wednesday’s choppy movement.

On an hourly scale, Silver price recovered firmly after testing the horizontal support placed from November 15 high at $22.25. The precious metal is testing the 20-period Exponential Moving Average (EMA) around $22.60 after a sheer recovery. Meanwhile, the 200-EMA at $22.20 is aiming higher, which indicates that the long-term trend is bullish.

The Relative Strength Index (RSI) (14) is aiming to reclaim the bullish range of 60.00-80.00 for a decisive rally.

Should the Silver price break above Friday’s high at $22.82, bulls will drive the asset toward the round-level resistance at $23.00, followed by Monday’s high at $23.52.

On the flip side, Silver price will witness a steep fall if its surrenders the 200-EMA at $22.20. An occurrence of the same will drag the asset toward November 24 high at $21.67. A breakdown of $21.67 support will expose the asset for more downside toward November 28 low of around $21.00.

FXStreet