Silver (XAG/USD) traded around $65 on Friday after rebounding from an intraday low of $63.51, maintaining gains but struggling to generate fresh upward momentum within a narrow weekly range [1]. The US Dollar weakened broadly as recent US economic data dampened expectations for a near-term Federal Reserve interest-rate hike, providing a supportive environment for silver, a non-yielding asset [1].
Technically, XAG/USD retains a bullish near-term bias, holding above the 50-period Simple Moving Average (SMA) near $63.60 and above the 100- and 200-period SMAs clustered between $60.80 and $59.90 on the 4-hour chart [1]. The Relative Strength Index (RSI) at 55 indicates moderately positive momentum, though the MACD remains below zero, suggesting that while upside pressure persists, it is losing steam after the recent rally [1]. Key support levels are identified at $64.38 (23.6% Fibonacci retracement), $63.60 (50-period SMA), and a structural zone between $62.89 and $61.68, with deeper support at $60.47 and $59.92 [1]. Resistance is seen at $66.80, which bulls must clear to extend the uptrend [1].
On the daily chart, XAG/USD is above the 50-day SMA at $61.36 and has reclaimed the 23.6% Fibonacci retracement at $63.10 as support, indicating a constructive near-term outlook despite a broader downtrend defined by the 100-day SMA at $68.77 and the 200-day SMA at $71.64 [1]. The RSI near 59 and a positive MACD histogram suggest bullish momentum remains intact as long as price stays below these longer-term averages [1]. Resistance levels are noted at $68.12 (38.2% retracement), $68.77 (100-day SMA), $71.64 (200-day SMA), and higher retracements at $72.18, $76.24, and $82.02 [1]. Immediate support is at $63.10, with the 50-day SMA at $61.36 acting as a key level to protect the recent advance [1].
Overall, while silver benefits from a weaker US Dollar and maintains a positive technical structure, short-term momentum is fading, leaving the metal vulnerable to further consolidation unless it can break above key resistance levels [1].
CONCLUSION
Silver is holding its recent gains near $65, supported by a weaker US Dollar and constructive technical signals, but faces fading momentum and strong resistance ahead. The market remains cautiously optimistic, with further consolidation likely unless bulls can clear the $66.80 resistance level.