Silver Catches A Firm Friday Bid, Climbs Back Into $22.70

(October 13, 2023 - Joshua Gibson)

• Silver is seeing recovery after Thursday's minor backstep.
• Spot prices have firmly gained on Friday, up nearly 4% from the day's opening bids.
• A declining trendline on the daily candlesticks poses a near-term threat to additional gains.

Silver bids cleared plenty of chart paper on Friday, with spot Silver gaining nearly 4% for the day and sending silver prices handily into a new high heading into the close of the trading week.

Despite the gains, silver remains overall bearish, still down 4.75% from the last swing high, with the year's high bids far above at $26.13.

With the US Dollar (USD) falling back on Friday and investor inflation-fueled fears abating, Silver prices are catching a firm bid.

Further price-bolstering remains the escalation in the Gaza Strip conflict as Israel and Palestinian Hamas trade blows following last week's rocket attacks by Hamas on Israeli targets.

With Middle East geopolitical tensions on the rise, and markets worried about potential spillover into neighboring countries via sanctions from larger, international neighbors, XAG/USD is catching some investor appetite for precious metals.

XAG/USD Technical Outlook

Friday's firm bid for spot silver prices sends the silver pinning directly into a descending trendline from late-August's swing high into the $25.00 handle, while the 50-day Simple Moving Average (SMA) sits just overhead current price action near $22.90.

The 200-day SMA is turning mildly bearish into $23.35, and will be capping off technical action moving ahead if silver bulls aren't able to extend a bull run and capitalize off the near-term floor set at $20.75.