Silver is recovering some ground after falling to weekly lows during the New York session of $22.56. However, a late buying impulse keeps XAG/USD trading in the green with gains of 0.41%. At the time of writing, the XAG/USD is trading at $23.21, above its opening price, and set to finish the week with losses of 1.23%.

Turning to the retail precious metals market, supply constraints have eased in recent weeks and premiums have come down some, particularly on silver bars and rounds.  Money Meals is not quoting any shipping delays.

In fact, if you are seeing broad shipping delays at any dealer right now, it would be wise to avoid doing business with them.  The wholesale market is currently well supplied, so delays at present should be considered a red flag.

The XAG/USD daily chart depicts that the non-yielding metal remains upward biased after testing an upslope support trendline drawn from November lows. However, failure to crack the latter and its confluence with the 20-day EMA triggered Silver recovery. Also, the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest that buyers are gathering momentum, and a daily close above the December 15 close of $23.05 could keep the trend intact.

In the near-term, the XAG/USD one-hour chart suggests that Silver’s dip below $22.60 opened the door for sellers to lean onto the 200-Exponential Moving Average (EMA) at $23.22 as immediate intraday resistance. Furthermore, mixed signals between the RSI – aiming upwards, and RoC – depicting buying pressure losing momentum might refrain traders from opening new positions.

Nevertheless, if XAG/USD breaks above the 200-EMA, the immediate ceiling level would be the daily pivot at $23.33, followed by the R1 pivot at $23.69. On the downside, the XAG/USD first support would be the 50-EMA at 23.16. A breach of the latter will expose December’s 15 daily low at $23.06, ahead of the $23.00 mark.

Silver on its way up after completion of running flat correction

Dec 18 2022