Silver Price Analysis: XAG/USD remains confined in a familiar range, trades below $24.00

NEW YORK (Jan 13) Silver struggles to gain any meaningful traction on Friday and oscillates in a narrow trading band through the early European session. The white metal is currently placed around the $23.75 area, nearly unchanged for the day, and remains well within a broader trading range held over the past three weeks or so.

From a technical perspective, this week's repeated failures to find acceptance above the $24.00 round figure warrants some caution for bullish traders. The XAG/USD, however, has managed to hold its neck above the 200-period SMA on the 4-hour chart. The latter is currently pegged near the $23.20 region and coincides with the lower end of the trading range, which, in turn, should now act as a pivotal point for short-term traders.

A convincing break below will mark a bearish breakdown, though it will be prudent to wait for some follow-through selling below the $23.00 mark before positioning for a further depreciating move. The XAG/USD might then extend the recent pullback from a multi-month top and accelerate the fall towards the $22.60-$22.55 region. The downfall could eventually drag spot prices to the next relevant support near the $22.10-$22.00 zone.

On the flip side, any intraday positive move beyond the $24.00 mark might confront some resistance near the overnight swing high, around the $24.20 region. This is followed by the multi-month high, around the $24.50-$24.55 region touched last week, which if cleared decisively will be seen as a fresh trigger for bullish traders. The XAG/USD could then aim towards reclaiming the $25.00 psychological mark for the first time since April 2022.

FXstreet