Analysis of the Silver Price: XAG/USD creates a buffer around the 20-EMA at $22.60

In the early European session, the silver price (XAG/USD) is exhibiting a sideways auction profile around the immediate obstacle of $22.60. The white metal has regained equilibrium after correcting from the $22.80 barrier level. The market sentiment is extremely subdued as investors anticipate a potential catalyst for renewed impetus.

In the meantime, the US Dollar Index (DXY) is battling to surpass the crucial 105.40 barrier. Following Wednesday's turbulent action, S&P500 futures are exhibiting a quiet performance.

After testing the horizontal support established by the November 15 high of $22.25, the hourly price of silver recovered strongly. After a swift recovery, the precious metal is testing the 20-period Exponential Moving Average (EMA) near $22.60. Meanwhile, the 200-EMA at $22.20 is trending upward, indicating a bullish long-term trend.

For a decisive rebound, the Relative Strength Index (14) aims to retake the positive area of 60.00-80.00.

Should the Silver price above Friday's peak of $22.82, bulls will drive the asset toward the $23.00 round-level resistance, followed by Monday's peak of $23.52.

In contrast, the silver price would experience a sharp decline if it breaches the 200-EMA around $22.20. A recurrence of the same will drive the asset to its high on November 24 of $21.67. A breach of $21.67 support would expose the asset to more losses approaching the November 28 low of approximately $21.00.