Silver Price Forecast: XAG/USD holds steady above mid-$32.00s, over one-week top

Silver consolidates in a range as bulls opt to wait for the release of the US NFP report.

The setup suggests that the path of least resistance for the XAU/USD is to the upside.

Any corrective pullback might still be seen as a buying opportunity and remain limited.

Silver (XAG/USD) oscillates in a narrow band during the Asian session on Friday and currently trades above mid-$32.00s, near its highest level in over a week touched the previous day. Moreover, the near-term bias seems tilted in favor of bullish traders and supports prospects for an extension of the weekly uptrend.

The recent bounce from sub-$31.00 levels, nearing the 100-day Exponential Moving Average (EMA), and the fact that oscillators on the daily chart have just started gaining positive traction validate the constructive outlook for the XAG/USD.  Hence, some follow-through strength beyond the $33.00 mark, towards the February monthly swing high around the $33.40 area, looks like a distinct possibility. 

The momentum could extend further towards the next relevant hurdle near the $33.60-$33.70 area before the XAG/USD climbs further towards the $34.00 round figure en route to the $34.50-$34.55 resistance zone. The white metal might then aim towards challenging a multi-year high, closer to the $35.00 psychological mark touched in October 2024. 

On the flip side, the $32.30-$32.25 horizontal resistance breakpoint, which coincides with the overnight swing low, might still protect the immediate downside ahead of the $32.00 mark. This is followed by the $31.80 area, below which the XAG/USD could decline to the $31.25-$31.20 region en route to the 100-day EMA, currently pegged near the $31.10-$31.00 area and last week's swing low, around the $30.80 area.

A convincing break below the latter would shift the bias in favor of bearish traders and drag the XAG/USD towards the $30.00 psychological mark en route to the $29.55-$29.50 support and sub-$29.00 levels, or the year-to-date low touched in January.

Silver daily chart