Silver (XAG/USD) trades on the front foot on Friday but lacks strong follow-through and remains within the narrow range seen this week.
At the time of writing, XAG/USD trades around $65 after bouncing from an intraday low of $63.51
The US Dollar (USD) weakens across the board as the latest batch of US economic data reduces expectations of a near-term Federal Reserve (Fed) interest-rate hike, creating a supportive backdrop for the non-yielding metal. Meanwhile, Silver also maintains a positive technical bias following its recent recovery from near $55. However, weakening short-term momentum leaves the metal vulnerable to further consolidation.
Technical Analysis: 4-hour chart XAG/USD maintains a bullish near-term bias as price holds above the 50-period Simple Moving Average (SMA) near $63.60 and the longer-term 100- and 200-period SMAs clustered between roughly $60.80 and $59.90. The pair is consolidating just under the recent cycle highs, with the Relative Strength Index (14) around 55 suggesting moderately positive but not overextended momentum, while the Moving Average Convergence Divergence (MACD) remains below zero with a negative line, hinting that upside pressure is firm but losing some steam after the latest rally. On the downside, initial support is seen at the 23.6% Fibonacci retracement at $64.38, followed by the 50-period SMA at $63.60 and a dense structural zone formed by the 38.2% retracement at $62.89 and the 50.0% level at $61.68, which converge with the 61.8% retracement at $60.47 and the 100-period SMA at $60.84.