Silver Price Forecast: Bullish And Poised To Close Above $81

Silver (XAG/USD) price surges over 4% on Friday, reclaiming $81.00 a troy ounce as the Greenback gets battered on positive news around the Middle East conflict. The reopening of the Strait of Hormuz and a second round of talks between the US and Iran pushed precious metals higher, and the white metal is no exception. At the time of writing, the XAG/USD pair trades at $81.82.

XAG/USD Price Forecast: Technical Outlook

The white metal advanced steadily on Friday, rallying for the fourth straight week and reaching a five-week high at $83.06 before retreating to $81.00. Price action seems constructive, and if Silver closes the day above the latter, it opens the door to challenging $90.00 in the short term.

Momentum turned bullish as the Relative Strength Index (RSI) cleared a previous peak, hinting that bulls are gathering some steam. Hence, in the short term, Silver’s could aim higher.

The next key resistance would be the March 13 high at $85.44, followed by the March 12 high at $87.43, followed by the March 11 peak at $89.42. Up next lies the $90.00 milestone.

Downwards, if XAG/USD tumbles below a key support trendline at around $77.65-$77.85, expect further losses. The next support would be the 100-day SMA at $77.24, followed by the 20-day SMA at $73.77.