Silver Price Forecast: XAG/USD consolidates gains above $36.00

• Silver correction has been contained above $36.00, the trend remains positive.
• The precious metal holds gains despite a less favourable context for safe havens.
• XAG/USD maintains its bullish trend intact with $37.00 resistance in focus.

Silver prices (XAG/USD) remain close to the multi-year highs near $37.00 hit last week, despite a moderate decline in demand for safe-haven assets, like precious metals, as fears that the Israel-Iran war might turn into a regional conflict have eased.

Israel and Iran have kept exchanging missile attacks over the weekend in a war that entered its fourth day, but the conflict did not extend to other countries in the area, at least for now. Apart from that, several countries have offered their efforts to mediate between the contenders, and US President Dolanld Trump is pushing them to sit and try to reach a peace deal. All this has translated into a slightly brighter market mood, which is weighing on demand for precious metals

XAG/USD bulls remain focused on the $37.00 resistance area

The technical picture remains bullish. The pair has been posting higher highs and higher lows since early June, and the correction from last week's highs has been contained at $35.50.

The doji candles on the daily chart reflect a hesitant market at current levels, but the 4-Hour RSI remains steady above 50, highlighting the bullish trend.

On the downside, immediate support is at the $36.00 level (June 11 and 13 lows) above $35.50 (June 12 low). A bearish reaction below here would put the bullish trend into question and bring the June 4 low, at $34.20, back into play.

On the upside, the $37.00 area is the 261.8% retracement of the April-May trade range, often a target for bullish and bearish cycles. So far, however, there is no clear sign of a trend shift. Above here, the next target is the 361.8% Fibonacci extension of the same trend, at $39.10.

XAG/USD 4-Hour Chart