Silver Price Forecast: XAG/USD consolidates below multi-year high as bullish momentum softens

• Silver is holding steady following a modest 0.56% gain on the previous day.
• The uptrend remains intact, with price holding above the 21-day EMA at $36.91.
• The RSI is easing from overbought levels, suggesting waning bullish momentum.

Silver (XAG/USD) is little changed on Thursday, trading around $37.80 after logging a modest gain of nearly 0.56% on Wednesday. The metal remains elevated after marking a 14-year high of $39.13 earlier this week, but momentum has cooled since as the spot prices consolidate below its peak ahead of US Retail Sales data. Traders are now weighing whether silver has enough strength to push higher or if a near-term pullback is on the cards.

On the technical front, Silver remains in an established uptrend, with the price holding firmly above the 21-day Exponential Moving Average (EMA), currently at $36.91. This moving average continues to act as dynamic support, reinforcing the short-term bullish bias. However, the metal has stalled just below the key resistance zone near $39.00-$39.13, where sellers emerged and capped upside attempts.

The Relative Strength Index (RSI) is easing from near the overbought zone, now hovering around 63.42, after spot prices touched multi-year highs earlier this week. This signals a waning of bullish momentum and a possible pause or pullback in the rally, unless new drivers emerge. Meanwhile, the ADX (Average Directional Index) remains low at 17.85, indicating a lack of strong trend conviction despite the bullish trend.

Immediate support is seen around $37.00 round number, aligning with the 21-day EMA and marking a key line in the sand for bulls. A break below this level could trigger a deeper pullback, exposing the next support at $35.50, followed by a stronger demand zone near $34.50. On the upside, a sustained move above $39.13 would likely attract fresh buying interest, opening the door for a push toward the psychological $40.00 level and potentially higher.