Silver (XAG/USD) rebounded modestly on Friday after touching a four-week low in the Asian session, finding support at the 100-day Simple Moving Average (SMA). The white metal currently trades around $31.35, up 0.30% for the day, but lacks strong buying momentum as investors await the US Personal Consumption Expenditure (PCE) Price Index.
From a technical standpoint, daily chart oscillators indicate growing bearish pressure, suggesting the recent downtrend could continue. A decisive break below the 100-day SMA, positioned near $31.15, could accelerate losses, potentially pushing silver below the $31.00 threshold and towards the next support level at $30.25. Further declines could test the psychologically significant $30.00 mark, and a sustained breakdown might confirm a near-term peak, opening the door for a slide toward the $29.55-$29.50 zone and December 2024’s swing low near $28.80-$28.75.
Conversely, any upside momentum faces initial resistance at $31.65, followed by the $32.00 level. A breakout above this region could fuel a short-covering rally, targeting $32.40-$32.45. A sustained move higher may drive silver towards $33.00, with the February 14 swing high of $33.40 as the next key level for bulls.
