Silver Price Forecast: XAG/USD Rebounds Toward $52.50 as Bulls Stay in Control
Silver prices are showing strong momentum again, with XAG/USD trading around $52.30 per ounce after bouncing back from earlier losses. The metal has been moving inside an upward channel, showing that buyers are still dominating the market.
Silver continues to hold above its 9-day Exponential Moving Average (EMA), which is around $50.01. This suggests that the short-term trend remains bullish. However, the 14-day Relative Strength Index (RSI) is now above 70, placing silver in the overbought zone, which could lead to a short-term pullback.
If the bullish move continues, silver may aim for its recent high near $53.77 recorded on October 14. A breakout above that level could open the doors for the next resistance levels at $54.30 and possibly $55.00.
On the downside, the first major support lies near the lower boundary of the rising channel and the 9-day EMA around $50.01. A drop below this zone might drag silver toward its 50-day EMA, which stands near $43.93.
Impact:
Silver could possibly climb toward $54 if the bullish momentum continues, but overbought signals hint that a short-term correction might soon take place.
