Silver Price Forecast: XAG/USD steadies above $41.50

• Silver rebounds modestly on Thursday, trimming intraday losses after sliding to a five-day low on Wednesday.
• Dip-buying emerges near $41.50 support, with prices hovering near the 50-period SMA.
• A breakdown below $41.50 could expose the next support base around $40.50.

Silver (XAG/USD) trims earlier intraday losses on Thursday, recovering from a five-day low marked on Wednesday in the aftermath of the Federal Reserve's (Fed) interest rate cut decision. At the time of writing, the white metal is trading near $41.81, rebounding from an intraday trough of $41.20.

The move reflects dip-buying interest around familiar support zones, despite a firm US Dollar (USD), as broader sentiment remains cautious following a sharp pullback from record highs on Wednesday.

On the 4-hour chart, the $41.50 region has emerged as a critical support zone, highlighted by repeated lower wicks showing buyers stepping in to defend the level. Price action is currently flirting with the 50-period Simple Moving Average (SMA) at $41.78, which has aligned with this area to form a strong short-term floor. A clear break below this level could expose the next support base around $40.50.

Resistance remains layered above, with the 21-period SMA at $42.16 acting as the first barrier to recovery. A push through this level would bring $42.50 into play, followed by a potential retest of the fresh 14-year high at $42.97. A sustained break beyond that milestone could expose the psychological $43.50 handle and open the path for further gains.

The Relative Strength Index (RSI) is hovering near 47 after cooling from overbought conditions. A move back above the 50 midline would hint at renewed bullish pressure, while a drop under 45 could reinforce the case for another leg lower. For now, Silver appears locked in a range, with $41.50 providing support and the $42.00-42.20 zone capping the upside.