Silver Price Forecast: XAG/USD advance stalls near $37.00 as holiday lull masks bullish setup

Silver Price Forecast: XAG/USD advance stalls near $37.00 as holiday lull masks bullish setup

Silver price traded sideways on Friday, remaining virtually unchanged at $36.84, due to thin trading volumes as US markets were closed for a holiday. The market mood turned slightly sour as headlines surrounding the US trade war, with its trading patterns taking center stage, following the approval of the One Big Beautiful Bill.

XAG/USD Price Forecast: Technical Outlook

From a technical standpoint, the grey metal is pausing its advance, although it remains upwardly biased as it has formed a double-bottom chart pattern. Nevertheless, the formation of a doji suggests that a pause is underway, as traders eye key resistance levels, such as the year-to-date (YTD) high of $37.31.

Momentum is bullish as depicted by the Relative Strength Index (RSI). That said, the path of least resistance is upwards.

Silver key resistance level to watch would be $37.00, the YTD high, and the February 29, 2012, at $37.49. Once cleared, the next stop is $38.00. On the other hand, if XAG/USD falls below $36.00, it clears the path for testing $35.82. Once hurdled, the next stop would be $35.00, before challenging the 50-day Simple Moving Average (SMA) at $34.39.