Silver Price Forecast: XAG/USD remains positive, supported above $34.00

• Silver prices maintain their bid tone, favoured by a weak USD..
• Weak US services and employment figures boosted safe-haven demand on Wednesday.
• XAG/USD is moving within a small ascending triangle, a bullish sign.

Silver prices (XAG/USD) maintain their bullish structure intact, with bulls aiming for the $34.60-$34.80 resistance area, with downside attempts contained above the $34.00 support level.

A US Dollar on its back foot is contributing to keeping the precious metal buoyed. US ISM Services PMI data showed an unexpected contraction in the sector's activity in May, and the ADP Employment report posted a poor increase in payrolls, which revived fears of an economic recession.

Beyond that, the global trade scenario remains highly uncertain. The negotiations between the US and its trade partners are failing to yield any significant breakthrough, and Trump has complained about the difficulties of cutting a deal with China's President, Xi, revealing that the world's two major economies are far from reaching a trade agreement.

XAG/USD is showing an ascending triangle pattern

The technical picture shows a bullish structure in place, from mid-May lows at $31.75, with price action testing the top of an ascending triangle pattern, which points to an eventual bullish outcome.

Prices are about to test the top of the triangle, at the lower limit of the $34.60-34-80 resistance area, which has been holding the pair over the last few days. Above here, a 261.8% Fibonacci extension awaits at the $36.10 area.

On the downside, a breach of $34.00 would invalidate this view, and add pressure towards the previous top, at $33.65 ahead of the $32.70 level.

XAG/USD 4-Hour Chart