Silver Price Forecast: XAU/USD advances to $58.70, still within previous ranges

• Silver extends its recovery to $58.70 amid a slight US Dollar pullback.
• A brighter market mood is weighing on the US Dollar, providing support for precious metals
• Technically, XAG/USD remains trading sideways between $45.85 and $49.35.

Silver (XAG/USD) appreciates for the second consecutive day on Thursday, reaching session highs above $48.70, supported by a slight pullback in the US Dollar. From a wider perspective, however, the pair remains contained within a horizontal channel, below key resistance at the $49.35 area.

A somewhat brighter market mood has undermined support for the safe-haven US Dollar, providing a mild boost to precious metals. Nevertheless, upside attempts are likely to remain limited, as the strong US data seen on Wednesday cast further doubts on a December rate cut by the Federal Reserve, which is likely to keep the Greenback supported.

Technical analysis: Consolidating losses below $49.35

The technical picture shows Silver crawling through the last two weeks' trading range., Oscillators show a somewhat stronger momentum, but the immediate upside bias remains frail so far, with the $49.35 area, where bulls were capped in October 23 and 31 highs, likely to pose significant resistance.

A confirmation beyond that level would give bulls fresh hopes to test the previous support in the area of $50.40-$50.60 (October 13, 17 lows). Further up the target would be the October 20 high, near $59.80.

A bearish reversal, on the contrary, would be tested at Tuesday's low near $47.00, ahead of the $45.55 area (October 28 low). A clear break of this level would resume the broader bearish trend from four-year highs, near $55.00 hit in mid-October, and target the September 24 low, near $43.70.