FX.co ★ Elif | XAG/USD, SILVER

Silver Market Update Silver prices on the hourly chart are showing signs of recovery after a sharp sell-off that pushed the metal down to the 45.80 - 46.00 zone. The chart shows that the metal is currently trading around 46.76, indicating a solid rebound from the recent lows. The short-term technical picture suggests that buyers are gradually regaining control, although the market still faces significant resistance levels. Price Action and Technical Outlook During the recent sessions, silver has experienced high volatility. After a sharp drop, prices found support near 45.80, a level that acted as a temporary floor. From there, a series of higher lows formed, indicating a recovery phase. The current price action is trying to break above 46.80, a resistance that is closely aligned with the 20-period moving average (red line). A decisive move above this level could open the way to 47.00 and possibly 47.20 in the short term. On the downside, immediate support is at 46.50, followed by strong demand zones around 46.20 and 46.00. If sellers can push prices back below these levels, it could put the market under renewed pressure towards 45.80. Momentum Indicators The RSI (14) is currently hovering around 55.84, suggesting a bullish bias from neutral. This reading reflects an improvement in momentum after the indicator previously approached oversold levels. A sustained rally above 60 would strengthen the case for further upside, while a rejection from the current level could signal consolidation before another directional move. Market Sentiment Overall, silver is attempting to rebuild bullish momentum after its sharp decline. The pullback suggests that buyers are interested in defending key support areas, although the metal needs to clear the 46.80 - 47.00 resistance to confirm a strong recovery trend. Traders should watch for a potential breakout above this zone, which could invite additional momentum-driven buying. Conversely, failure to hold above 46.50 could result in a sideways trade or a renewed decline towards the 46.00 handle. In the broader picture, silver price action remains sensitive to US dollar movements, interest rate expectations, and safe-haven demand trends. Conclusion The near-term outlook for silver is cautiously bullish, despite the market showing resilience after a sharp correction. Traders may continue to monitor 46.50 as near-term support and 47.00 as immediate resistance to gauge future directional movement.