Silver Price Forecast: $109 Holds After $117 Spike – Is $120 the Next Target?
Silver prices are consolidating near $109.80 after a powerful surge that briefly carried XAG/USD to $117.70, marking one...
Quick overview
- Silver prices are consolidating around $109.80 after a significant surge to $117.70, indicating stabilization rather than a reversal.
- The rally was fueled by safe-haven demand and strong interest in inflation-resistant assets, with elevated trading volume suggesting genuine participation.
- Key support levels are at $107.25 and $104.00, with a bullish structure intact as long as prices remain above $104.00.
- A breakout above $111.25 could lead to targets of $115.00 and $117.70, while a drop below $104.00 would delay the bullish outlook.
Silver prices are consolidating near $109.80 after a powerful surge that briefly carried XAG/USD to $117.70, marking one of the strongest upside moves in recent years. While the pullback has been sharp, price behavior suggests stabilization rather than a reversal, as buyers continue to defend key technical levels.
The rally was driven by a mix of safe-haven demand, strong precious-metal flows, and growing interest in inflation-resistant assets. Importantly, volume during the advance remained elevated, pointing to participation rather than speculative excess.
Silver (XAG/USD) Key Support Levels Hold the Bullish Structure
From a technical standpoint, silver remains above its rising trendline and continues to trade within a well-defined ascending channel. The recent dip found support near $104.00, which corresponds with the 50% Fibonacci retracement, a level often associated with trend continuation rather than breakdown.
[[XAG/USD-graph]]
Key technical levels to watch:
- Support: $107.25, then $104.00
- Deeper support: $100.80
- Resistance: $111.25, then $117.70
As long as price holds above $104.00, the broader bullish structure remains intact.
Silver (XAG/USD) Momentum Resets Without Breaking
Momentum indicators show healthy cooling. RSI has eased from overbought conditions and is stabilizing near the mid-to-upper 50s, a zone that typically precedes renewed upside in trending markets. Recent candles show smaller bodies and reduced selling pressure, reinforcing the view that the move lower is consolidation, not distribution. This kind of pause often allows stronger hands to accumulate before the next directional push.
Silver Outlook: Consolidation Before Expansion
If silver reclaims $111.25, the technical path opens toward $115.00 and a retest of $117.70. A confirmed breakout above that level would shift focus toward the $120.00 psychological zone.
Failure below $104.00 would postpone the bullish scenario and expose $100.80, though such a move would still represent a pullback within a larger uptrend rather than trend failure.
Silver (XAG/USD) Trade idea: Buy pullbacks near $107–$105, stop below $100.80, targets $115 and $117.70.
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