Silver consolidates near $36.00 with risk-on sentiment limiting gains

• Silver consolidates near $36.00 as markets continue to favour risk assets.
• XAG/USD trades in a tight range with a potential Doji candle forming on the daily chart.
• Current price action remains supported above the key support level near $35.40.

Silver is holding within a tight range on Monday, with XAG/USD consolidating around the key $36.00 psychological level at the time of writing. 

The metal is under modest pressure as broader market sentiment favours risk. US equities are holding onto recent gains near record highs. Increased appetite for risk continues to weigh on demand for traditional safe-haven assets, limiting Silver's gains.

Intraday support has emerged around the current session low of $35.41, which has helped limit the downside move for Silver throughout June.

Silver technical analysis: XAG/USD consolidates in a tight range around $36.00

The daily candlestick shows a small-bodied candle with a pronounced lower wick, resembling a potential Doji formation. 

This type of pattern typically appears when there is indecision in the market. Buyers and sellers push prices in both directions, but neither side gains clear control by the end of the day. The lower wick highlights earlier selling pressure that was met with buying interest near a key support level. 

The 20-day Simple Moving Average is providing additional resistance at $36.11. The XAG/USD price action, coupled with the Relative Strength Index (RSI) near 55, suggests that the market is in a potential consolidation phase.

The presence of support around the 23.6% Fibonacci retracement level of the April-June incline provides a solid technical floor at $35.12. Meanwhile, resistance levels above may cap gains in the short term.

Silver (XAG/USD) daily chart

If price maintains support above $35.38 and reclaims the 20-day SMA at $36.12, buyers could push Silver back toward the prior week's high at $36.84. 

A confirmed breakout above this level would expose the June YTD high of $37.32 and possibly the February 2012 high at $37.49, strengthening the broader uptrend.

In contrast, failure to hold above $35.38 support could trigger a breakdown below the rising channel, opening the door to further downside toward the 50-day SMA at $34.21. 

If that level fails, the next support lies at the 38.2% Fibonacci retracement near $33.76, potentially signalling a deeper correction within the broader trend.