Silver Price Forecast: XAG/USD consolidates near four-week high, below mid- $53.00s

• Silver bulls pause for a breather following the recent strong gains to a nearly four-week top.
• The constructive technical setup backs the case for a further near-term appreciating move.
• Any corrective slide below $53.00 could be seen as a buying opportunity and remain limited.

Silver (XAG/USD) is seen consolidating its strong gains registered over the past four days and oscillating in a range during the Asian session on Thursday. The white metal currently trades around the $53.35-$53.40 region, just below a nearly four-week top touched on Wednesday, and seems poised to appreciate further.

From a technical perspective, the recent goodish rebound from the vicinity of the 50-day Simple Moving Average (SMA) and the subsequent move up favor the XAG/USD bulls. Moreover, oscillators on the daily chart have been gaining positive traction and are still away from being in the overbought territory, validating the constructive outlook for the white metal.

Hence, some follow-through strength beyond the overnight swing high, around the $53.65-$53.70 region, towards reclaiming the $54.00 round figure, looks like a distinct possibility. A sustained strength beyond the latter would set the stage for an extension of the positive momentum towards retesting the all-time peak, around the $54.85 zone, touched in October.

On the flip side, any meaningful corrective slide below the $53.00 mark could attract some buyers near the $52.45 intermediate support, which should help limit the downside for the XAG/USD near the $52.00 round figure. Failure to defend the said support levels, however, could prompt some technical selling and drag the white metal to the $51.30-$51.20 area.

Silver daily chart