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SILVER: BULLS RETAIN CONTROL NEAR MULTI-WEEK HIGH, ABOVE $23.00

Silver is currently consolidating after a strong move upwards on the previous day, reaching its highest level since February. The technical setup favors bullish traders and supports the potential for additional gains. Even if there is a pullback below the 61.8% Fibo, it is likely to attract fresh buyers and remain limited.

The white metal is hovering above the $23.00 level, consolidating recent strong gains that began from the year-to-date low earlier this month, and is poised to continue the upward trajectory witnessed over the past two weeks or so. This sustained upward move is supported by this week's break and acceptance above the 61.8% Fibonacci retracement level of the recent pullback from a multi-month peak, adding credibility to the positive outlook.

Technical indicators on the daily chart remain in the positive territory, and the absence of overbought signals indicates that the potential for an extension of the upward trend remains intact, which favors bullish traders. Therefore, a subsequent move beyond the $24.00 level could be in the cards, with a retest of the multi-month peak around the $24.65 region seen in February being a distinct possibility. Additional gains could occur if there is follow-through buying, which would enable XAG/USD to reclaim the psychologically significant $25.00 mark for the first time since April 2022. The next relevant hurdle is situated in the $25.30-$25.35 zone.

However, dips below the $23.00 level may find some support near the 61.8% Fibo resistance breakpoint, located around the $21.80 region. Any subsequent decline is likely to attract new buyers near the $22.50 horizontal zone, which should limit the downside for XAG/USD near the $22.20 area or the 50% Fibo level. This is followed by the $22.00 mark, which if broken decisively, could set the stage for more significant losses.