- Silver will attract some buyers near SMA Pivot Support on Friday for 100 days.
- The setup prefers support for brochures for breakdowns under the mentioned support.
- With each increase, it is considered a sales option and remains limited.
Silver Price Outlook: XAG/USD Defends 100-Day SMA Support, Awaits US PCE Data
Silver (XAG/USD) is holding above its 100-day Simple Moving Average (SMA) support and has rebounded slightly from a four-week low reached during the Asian session on Friday. The precious metal is currently trading around the $31.35 level, gaining over 0.30% on the day. However, upside momentum remains limited as traders await the release of the US Personal Consumption Expenditure (PCE) Price Index.
Technical Analysis
On the daily chart, technical indicators are showing increasing bearish pressure, suggesting the possibility of an extended downtrend. However, a clear break below the 100-day SMA support, which is near the $31.15 mark, would be needed to confirm further downside. If this level is breached, silver could decline below $31.00, with the next key support appearing around $30.25.
Further selling pressure may drive XAG/USD towards the psychological $30.00 level. A decisive break below this area would indicate a potential near-term top, opening the door for additional losses. The next downside targets include the $29.55-$29.50 horizontal support zone, followed by the $29.00 round figure and December 2024’s swing low near $28.80-$28.75.
Upside Potential
If silver continues its upward movement, immediate resistance is expected near $31.65, followed by the recent swing high around $32.00. A sustained move above this level could trigger short-covering, pushing the price towards the $32.40-$32.45 region. Beyond this, bulls may attempt to challenge the $33.00 mark, with a potential test of the February 14 swing high near $33.40.
Silver (XAG/USD) Daily Chart Analysis
