Silver price is trading above the crucial level of $24 amid a weakening US dollar. Notably, the value of the greenback tends to have an inverse correlation to that of precious metals. Granted, the dollar index has remained above the key support level of $93.50. As such, the upward potential for the precious metal may be limited.
Silver price prediction
The precious metal is finding resistance at 24.50 after the bulls managed to hit and surpass the psychological level of 24.00 in the previous session. Notably, 24.00 has been an evasive level since early-September. An attempt to past that zone on Tuesday was unsuccessful as silver price pulled back to an intraday low of 23.57 on Wednesday.
At the time of writing, the commodity was up by 0.23% at 24.35. On a three-hour chart, it is trading above the 25 and 50-day exponential moving averages; pointing to further gains.
In the near term, I expect silver price to continue finding resistance at 24.50. On the downside, 24.00 will remain a crucial support zone for the metal. In particular, it may bounce off the support level along the 25-day EMA at 23.89.
If the bulls manage to push the price past the upper border of the aforementioned horizontal channel, they will attempt to retest September high of 24.86 before pulling back to the 24.50 resistance zone. However, this bullish outlook will be invalidated by a move below 23.89.
