Silver (XAG/USD) struggles to maintain momentum around $33.80 in early Asian trading on Friday. However, the downside may be limited as softer US consumer and producer inflation data could prompt the Federal Reserve (Fed) to consider an interest rate cut in June, providing some support to the metal.
Additionally, concerns that protectionist policies from US President Donald Trump could push the world’s largest economy into recession may bolster silver’s appeal as a safe-haven asset.
Technical indicators suggest a continued bullish outlook. Silver remains above the key 100-period Exponential Moving Average (EMA) on the 4-hour chart, while the Relative Strength Index (RSI) hovers near 67.00, signaling strong upward momentum.
The next critical resistance for silver lies in the $34.00–$34.10 zone, which aligns with a key psychological level and the upper boundary of the Bollinger Band. A decisive break above this range could trigger a rally toward $34.55, the October 28 weekly high, and potentially $34.87, the October 21 high.
On the downside, initial support is seen at $32.94, the March 13 low. A break below this level could expose $32.41, marked by the 100-period EMA. Further selling pressure could drive prices toward $32.00, aligning with the lower Bollinger Band and a key round figure support.
