Silver (XAG/USD) slipped slightly from a nearly three-week peak reached during the Asian session on Thursday, trading just above the mid-$38.00 level, up around 0.10% for the day. A modest recovery in the US Dollar from its two-week low is pressuring the USD-denominated metal, limiting further upside.
Technical Outlook
The minor pullback appears driven by profit-taking after the Relative Strength Index (RSI) on the 1-hour chart entered slightly overbought territory. On Wednesday, silver broke above a short-term descending trendline and cleared the $38.40 horizontal resistance, signaling renewed bullish momentum. Positive daily chart indicators suggest any dip may attract fresh buying interest.
Key Support Levels
Immediate support lies at $38.40, with stronger buying interest expected near the $38.10 trendline breakout zone. A drop below $38.00 could open the door toward the mid-$37.00 range, with $37.00 as the next key downside target. A decisive break under this level may shift sentiment in favor of sellers, signaling potential for a deeper pullback.
Upside Targets
For further gains, bulls will look for a break above the recent high at $38.75. A sustained move beyond this level could push prices toward $39.00, and possibly $39.50 — the highest since February 2012.
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