Silver Price Forecast: XAG/USD consolidates right below $37.00 in risk-off markets

LONDON (July 4) Silver (XAG/USD) is trading near its highest levels in the last two weeks, consolidating gains below the $37.00 area after having rallied beyond 2% over the previous two days.

Investors’ concerns about trade uncertainty are keeping precious metals buoyed on Friday as US trade partners await letters from US President Trump informing them about the levies that will be added to their products from July 9.

Technical Analysis: XAG/USD key resistance is at $37.30

The technical picture shows an improved bullish momentum on Friday, yet with the pair trapped within the last two weeks’ trading range, between $35.40 and $37.35, consolidating gains following a sharp rally from early May lows.

Silver bulls remain capped below Thursday’s highs at $37.05 so far, which closes the path towards the June 18 high, at $37.30. Above here, the 127.2% Fibonacci extension of the mentioned horizontal channel, at $37.85, is a plausible target.

On the downside, Thursday´s low, at $36.35, is limiting downside attempts for now. Below here, the July 2 low, at $35.85, is likely to provide some support ahead of the channel bottom at the $35.30-$35.40 area (June 24 and 29 lows).

FXStreet