Silver Price Forecast: XAG/USD recovery holds above $41.50 as bulls eye $42.97 retest

• Silver extends its recovery on Friday after testing support near the $41.50.
• A retest of the 14-year high at $42.97 remains on the radar for bulls.
• RSI has recovered to 57 and MACD is turning positive, signaling strengthening momentum as long as $41.50 holds.

Silver (XAG/USD) extends its recovery on Friday, building on Thursday's modest rebound after hitting its lowest level in over a week earlier this week. At the time of writing, the white metal is trading around $42.35, stabilizing above key technical levels as buyers attempt to regain control following a pullback from the 14-year high at $42.97.

On the 4-hour chart, the $41.50 area -- the previous breakout zone -- has emerged as a key support, reinforced by repeated lower wicks showing dip-buying interest. Price is also holding above the 21-period SMA at $42.06 and the 100-period SMA at $41.22, keeping the near-term bias constructive. A decisive break below $41.50 would risk exposing the deeper base near $40.50.

On the topside, resistance remains layered, with $42.50 acting as the next hurdle before a potential retest of the recent 14-year high at $42.97. A sustained break above that peak could open the way toward the psychological $43.50 handle, extending the broader uptrend. Until then, price action suggests a consolidation phase with an upward tilt.

Momentum signals are improving. The Relative Strength Index (RSI) has recovered to 57, showing growing bullish momentum without nearing overbought territory. Meanwhile, the MACD histogram is turning positive, with a potential bullish crossover developing. Together, these signals suggest upside pressure could build further as long as Silver holds above the $41.50 support floor.