In early European trading on Monday, silver prices are experiencing modest gains, hovering around $33.50. The metal maintains a positive outlook as it remains above the critical 100-day Exponential Moving Average (EMA), supported further by a bullish Relative Strength Index (RSI). Traders are eyeing the resistance zone between $33.60 and $33.70, while the initial support level to monitor is around $32.61.
The rise in silver prices can be attributed to heightened geopolitical tensions and a weakening U.S. dollar, both of which tend to bolster the appeal of safe-haven assets. Additionally, attention is focused on comments from the Governor of the Bank of Japan, which could influence market dynamics later in the day.
From a technical perspective, the bullish sentiment for silver is confirmed by its position above the 100-day EMA on the daily chart. The RSI is currently positioned above the midline at approximately 57.45, indicating a positive momentum for the precious metal in the near term.
If silver prices break decisively above the $33.60-$33.70 resistance range, it may gain further upward momentum, potentially targeting $34.60, the peak reached on May 28. Beyond that, the next significant resistance is set at the psychological barrier of $35.00, which could act as a key indicator for future price movements.
Conversely, should the market turn bearish, the low from May 22 at $32.61 will serve as the first major support level. A fall below this threshold could lead prices down to around $32.20, aligned with the 100-day EMA. Traders should also keep an eye on further downside support lined up at $31.00 and the lower boundary of the Bollinger Band, which could indicate a greater downtrend.
