Silver consolidates just below its highest level in over two weeks, achieved on Thursday. The technical landscape suggests caution, as any downward movement could present buying opportunities and be supported.
Silver (XAG/USD) remains steady below $37.00 during the Asian session and stays close to a two-week high. The technical indicators suggest an upward tendency, with the RSI remaining above 50, yet the MACD histogram does not confirm a bullish trend.
The price may stall near the $37.30-$37.35 area, the highest since February 2012. Below $36.50-$36.45, prices could dip towards $36.15-$36.10, and falling below $36.00 may lead towards $35.50-$35.40, a crucial support zone.
A break below this zone could shift the short-term outlook to bearish, with potential declines towards $35.00. Further selling could drive Silver down to intermediate support near $34.75 and towards the $34.45 region.
Silver is a lesser-known precious metal investment to Gold, often used to diversify portfolios and as a hedge against inflation. Prices are affected by geopolitical events, interest rates, and the US Dollar’s strength, as well as industrial demand from sectors like electronics and solar energy.
Silver is currently trading just under the $37.00 mark, holding firm after reaching its highest level in more than two weeks. This plateau reflects a phase of consolidation following the recent surge, and although momentum indicators remain tilted to the upside, the underlying strength of the move appears mixed. The RSI (Relative Strength Index) hovering above 50 generally leans positive, signalling demand hasn’t vanished—but the lack of confirmation from the MACD should give traders a reason to pause before positioning too aggressively.
From our perspective, the $37.30 to $37.35 range is acting as a ceiling for now. Price action has struggled to push through this zone, which suggests sellers are active there or buyers are hesitating. That said, the market remains within striking distance, implying the door is still open for a renewed attempt—though only if momentum returns with greater conviction. Without that, it makes more sense to let others chase the price while observing for reactions near support levels.
If the metal retreats, watch how it behaves around $36.45 and again near $36.10, both of which should be viewed as areas where buyers might re-enter. These levels have acted as buffers recently and continue to be worth watching closely. A dip below $36.00 would raise eyebrows, possibly inviting more persistent selling and pulling silver back towards the $35.50 region. That zone has previously offered a base, and whether it continues to do so will likely shape sentiment for the short-term.
We see that a descent through $35.50 opens up room for a broader retracement, potentially dragging the metal towards $35.00, with $34.75 and $34.45 marking further steps down the ladder. Each of these markers has previously seen interaction between opposing forces, meaning they still carry weight in price discovery.
For those focused on market signals, it’s impossible to ignore silver’s dual role—as a speculative asset and an industrial input. Geopolitical developments and shifts in rates policy continue to ripple across the broader commodities complex. The US Dollar’s performance remains pivotal. Fluctuations in its strength often bring about corresponding moves in metals priced in dollars, which we continue to monitor closely for timing decisions.
Moreover, industrial demand isn’t a peripheral factor. The sectors relying on silver, from electronics to solar technology, are reshuffling expectations. These dynamics extend beyond near-term charts and feed into the broader narrative we’re tracking in commodities positioning.
Over the past two weeks, this consolidation has offered time for positioning to realign. With present levels being so close to areas last visited over a decade ago, the price is vulnerable to larger moves in either direction. There’s little room for assumption. Strategy now should be more adaptive than predictive. Instead of anchoring to directional bias, it’s better to respond to well-defined markers. Look for signs of rejection or confirmation near each key level, and adjust exposure accordingly.