Silver Price Analysis: Rebound Capped Below $70 With Downside Risks Intact

Silver (XAG/USD) price turns positive on Friday after posting back-to-back bearish sessions, as heightened tensions in the Middle East decreased the white metal’s safe-haven appeal, prompting traders to turn to the US Dollar (USD). Nevertheless, buyers emerged, pushing XAG/USD higher and driving it near the $70.00 figure, up 2.70%.

XAG/USD Price Forecast: Technical Outlook

Silver price seems poised to consolidate further after falling below the 100-day Simple Moving Average (SMA), which remains above the spot price as a key resistance level at $73.66.

Bears remain in charge, as indicated by the Relative Strength Index (RSI), though the index has been trending upwards towards its neutral level, which, once pierced, could push Silver prices higher.

For bulls to regain control, XAG/USD must clear the $70.00 figure, though they would gather further traction clearing the 100-day SMA at $73.66. In that outcome, the next resistance would be the March 3 daily low, turned resistance at $77.98, ahead of the 20-day SMA at $78.63.

Conversely, the trend lower will resume if sellers clear the March 26 low of 66.73, which could drive XAG/USD towards the current week’s low of $61.02.