silver prices have experienced a slight decline, settling at around $33.75 as Friday’s early Asian session unfolds. Despite this dip, the metal maintains a positive outlook, supported by its position above the 100-period Exponential Moving Average (EMA) and a bullish reading on the Relative Strength Index (RSI). The key resistance zone to monitor is identified between $34.00 and $34.10, while initial downside support is found at $32.94.
During early trading, silver (XAG/USD) showed some loss of momentum, approaching $33.80. However, the outlook for the precious metal may improve, given easing inflation pressures in the U.S. This could prompt the Federal Reserve to consider interest rate cuts in the upcoming June policy meeting, creating a supportive environment for silver . Additionally, concerns regarding potential protectionist measures from the U.S. administration may push the economy into recession, further enhancing silver ’s appeal as a safe-haven asset.
Analyzing the 4-hour price chart reveals that silver continues to have a constructive outlook, remaining above the significant 100-period EMA. The RSI, positioned above the midpoint at approximately 67.00, signals that bullish momentum persists, suggesting a favorable potential for further gains.
Important resistance is found in the $34.00 – $34.10 range, which represents both a psychological barrier and the upper limit of recent volatility bands. A strong move above this threshold could trigger further upward momentum, possibly leading to targets of $34.55 and $34.87, marking recent weekly highs.
Conversely, initial support is seen at $32.94, the lowest point recorded on March 13. Should the price break below this level, it may expose further downside towards $32.41, coinciding with the 100-period EMA. Sustained selling pressure could even see prices retreat to the vicinity of $32.00, near the lower boundary of volatility bands and a significant round figure.
