Silver Price Analysis: XAG/USD holds onto strong daily gains above $23.50

• XAG/USD peaks at $23.68, highest level since last Wednesday.
• Metals reversed sharply, point to further gains.

Silver is rising 2.75% on Monday after making a sharp reversal from levels under $23.00. Recently it printed at $23.68 a fresh high. It is hovering near the top, holding onto all its daily gains.

The bounce to the upside took place amid a decline of the US dollar across the board and also on the back of risk appetite. In Wall Street, the Dow Jones rises by 0.80% and the Nasdaq by 1.53%.

Also gold is rising considerably at the beginning of the week, with XAU/USD back above $1,800. At the same time, the DXY falls 0.40% and is approaching 93.00.

From a technical perspective, XAG/USD received a boost after breaking a short-term bearish trendline around the $23.40 area. On the upside, the next resistance stands at $23.80 and then attention would turn to the $24.00 zone. On the downside, the initial support is seen at $23.40. A decline below $23.20 would increase the bearish pressure.

Technical levels