Silver Price Flat Around $38.00 as Traders Show Hesitation

Silver Price Forecast: XAG/USD Flat Around $38.00 as Traders Remain Cautious

Silver (XAG/USD) showed resilience during the Asian session on Friday, stabilizing near the $38.00 mark after retreating from the $38.70-$38.75 zone, a three-week high. Despite some dip-buying interest, the metal lacks strong bullish momentum at present.

Mixed Technical Indicators Signal Caution

The price continues to hover below the 200-hour Simple Moving Average (SMA) but has rebounded from support near an ascending channel that has been in place for almost two weeks. However, mixed signals from hourly and daily oscillators advise traders to be cautious before committing to strong directional bets.

Key Resistance and Support Levels to Watch

Immediate resistance lies around the $38.20-$38.25 region. Should silver sustain a move beyond this, it may target the $38.50-$38.55 zone, and potentially challenge the recent multi-week high near $38.75. A further bullish move could see silver testing the psychologically important $39.00 level.

On the downside, a drop below $37.80 could lead to a decline toward mid-$37.00 levels, and possibly to the $37.00 area. Continued selling pressure might push prices further down to retest the monthly low near $36.20.

Outlook for Traders

With mixed technical cues, traders are advised to exercise caution. A decisive break above resistance or below support will likely determine silver’s next significant price movement.