Silver Price Analysis: XAG/USD edges higher despite USD gains

• Silver price bounced off the weekly low after sliding below the $25.10 area, around last Friday’s low.
• Mixed signals keep traders cautious; bullish continuation requires a break above $25.73, while downside risks remain below $25.33.

Silver price prints minuscule gains as the Asian session begins after registering solid gains of 0.23% on Tuesday. Risk aversion is the game’s name; even though the US Dollar (USD) reported gains, so did the white metal. At the time of writing, the XAG/USD is trading at $25.60 per troy ounce.

XAG/USD Price Forecast

The XAG/USD last week’s pullback nearby the 20-day Exponential Moving Average (EMA) at $25.06 resumed since the beginning of the current week. Monday’s price action was dull, as the white metal traded within a $0.20 rally before dropping toward the weekly low of $25.33.

It should be said the XAG/USD recovery had shown no sign of buyers gathering momentum, as shown by the Relative Strength Index (RSI) indicator, which remains in bullish territory, but is almost flat. The 3-day Rate of Change (RoC) indicated that sellers are moving in. Mixed signals could refrain XAG/USD traders from opening new positions as the US Consumer Price Index (CPI) data looms.

For a bullish continuation, XAG/USD buyers need a clear break above $25.73. Once cleared, the next supply zone that would be tested is the year-to-date (YTD) high at $26.12. A breach of the latter will expose the April 18, 2022, daily high of $26.21.

On the other hand, the XAG/USD needs to drop below the weekly low of $25.33. A break below this support area and the next stop would be the 20-day EMA at $25.19 before falling to the $25.00 figure.

XAG/USD Price Chart – Daily Chart