• Silver price rallies more than 2.40% on Wednesday due to falling US T-bond yields.
• XAG/USD:  Break above $23.00 could open the door for a re-test of an 8-month high.

Silver price bounces off the daily low at $22.10, and prints a fresh two-day high around $22.81, due to broad US Dollar (USD) weakness and falling US Treasury bond yields, as investors seeking safety and pricing in a recession bought US Treasuries. Therefore, the XAG/USD is rallying, trading at $22.72, gaining some 2.49%.

Silver Price Analysis: XAG/USD Technical Outlook

The daily chart shows that the XAG/USD uptrend remains intact. Tuesday’s price action formed an inverted hammer following Monday’s collapse of 3.85%, and even though it closed below near-term support of the December 5 low of $22.17, it climbed sharply on Wednesday.

Like the Relative Strength Index (RSI) and the Rate of Change (RoC), oscillators depict that buyers are gathering momentum. Hence that could prepare the territory for a re-test of the eight-month high at around $23.51.

Therefore, the XAG/USD first resistance would be the psychological $23.00 figure. Above it lies the December 5 swing high of $23.51 (also the 8-month high), which, once broken, could send XAG/USD rallying toward the psychological $24.00.

As an alternate scenario, the XAG/USD first support would be the December 6 swing low of $22.03, followed by the 20-day Exponential Moving Average (EMA) at $21.74, followed by the 200-day EMA at $21.06.

Silver Key Technical Levels