Silver Price Finds Support at $38.50, Eyes Break Above $39.00

Silver Price Outlook: XAG/USD Rebounds Toward $39.00 Resistance

XAG/USD Holds Steady Above $38.50 After Pullback

Silver (XAG/USD) kicked off the week with a mild rebound, trading around $38.50 on Monday after last week’s brief decline. The July 14 peak of $39.13 remains the multi-year high, and price action suggests bulls are eyeing a breakout above that level.

Technical Indicators Signal Bullish Bias

On the hourly chart, momentum indicators point toward renewed buying interest:

• RSI hovers near 70, reflecting strong upward momentum.
• ADX is turning higher, confirming the potential strength of the move.

Key levels to watch:

• Immediate resistance: $39.00 (psychological) and $39.13 (July 14 high)
• Support: $38.00 (round number) and $37.50 (demand zone)

“Silver’s pullback may have ended, and momentum appears to be shifting in favor of bulls again,” technical analysts noted.

Fundamental Tailwinds: USD Softness and Yields Decline

The softer US Dollar and declining Treasury yields are also supporting precious metals. Risk aversion has grown due to ongoing trade tensions and global uncertainty, prompting investors to seek refuge in metals like silver.

Key Takeaways

• Silver holds above $38.50, recovers from last week’s modest dip
• RSI near 70 and ADX reversal hint at fresh upside momentum
• Traders watching $39.00 and $39.13 as key resistance
• US Dollar weakness and lower yields support bullish outlook

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