Silver Price Forecast: XAG/USD range narrows, eyes bullish breakout

• The metal remains supported above the 20-day SMA, which also aligns with the Bollinger Band midline near $36.35.
• A breakout above the upper Bollinger Band near $37.00 could pave the way for fresh multi-year highs.
• Momentum indicators remain constructive, with the RSI near 62 and the ROC recovering to 2.00.

Silver (XAG/USD) is trading with a modest positive bias on Thursday, holding steady near $36.75 during the American trading session after easing from an earlier high of $37.07. The price briefly approached its June 18 peak of $37.32, a 13-year high, before trimming gains following stronger-than-expected US Nonfarm Payrolls (NFP) data, though the overall technical setup remains supportive for the bulls.

From a technical perspective, the metal remains confined to a tight range. Silver is consolidating above the 20-day Simple Moving Average (SMA), which also serves as the midline of the Bollinger Bands, providing dynamic support around $36.35

The Bollinger Bands are beginning to tighten, suggesting that a potential breakout could be on the horizon. If the price manages to close above the upper band around $37.00, it could spark renewed upside momentum, potentially pushing Silver toward fresh multi-year highs beyond $37.32.

Momentum indicators remain supportive. The Relative Strength Index (RSI) remains elevated near 62, comfortably above the neutral 50 level, indicating strong yet not overextended bullish momentum. Meanwhile, the Rate of Change (ROC) has bounced back into positive territory, last seen around 2.00, reflecting a pickup in buying interest.

On the downside, immediate support is seen at $35.50, marking the lower boundary of the current trading range, followed by the lower Bollinger Band near $35.71. As long as XAG/USD holds above this zone, the broader bullish trend is expected to remain intact.