Silver (XAG/USD) is holding steady just above the $41.00 level during Thursday’s Asian session, consolidating gains after recently hitting its strongest levels since September 2011. The metal continues to trade within a one-week range, as investors await fresh cues from upcoming U.S. inflation data before committing to new positions.
Bullish Setup Points Toward Upside Potential
The recent pause in silver’s rally is viewed as a healthy consolidation rather than weakness. The daily Relative Strength Index (RSI) has cooled from overbought territory, while momentum indicators remain positive, suggesting the path of least resistance still points upward.
A confirmed breakout above the $41.45–$41.50 resistance zone could trigger the next leg higher, with bulls targeting the $42.00 round figure and potentially extending toward $42.65.
Support Levels in Focus
On the downside, dips below $41.00 are likely to attract fresh buyers. Strong support lies near the $40.50–$40.55 range, which aligns with the lower boundary of the current consolidation channel. A decisive break below this area could spark technical selling, exposing silver to a retest of the $40.00 psychological mark or even the mid-$39.00s.
Outlook
While short-term volatility may persist ahead of key U.S. inflation releases, silver’s long-term technical structure remains bullish. Traders continue to favor dip-buying strategies, with the market eyeing a breakout above $41.50 as the trigger for the next rally leg.
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