Silver price holds near $63.99 resistance as weaker US dollar supports demand

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Silver up 0.74% today to $63.8

Highlights

Silver benefits from a weaker US dollar, increasing its attractiveness to international buyers and stimulating investor interest.
Strengthening US manufacturing data suggests improved industrial demand prospects, supporting positive sentiment for silver as it approaches the $64 resistance.
Technical signals indicate strong bullish momentum in the short term, with price expected to trade within a $62.24 to $65.36 range and a likely move above $63.99 resistance targeting further gains.

Dollar weakness and robust US manufacturing drive silver demand

Silver's latest move is supported by a weaker US dollar alongside stronger US manufacturing data, according to Fxempire. The softer dollar boosts the metal's appeal to international buyers and encourages broader investor demand, while improved manufacturing activity points to potential increases in industrial consumption. These conditions help explain current market sentiment for Silver as the metal tests the $64 resistance area.

Bullish momentum persists below key long-term resistance

On the technical front, XAG is positioned above the SMA-20 and SMA-50 on the H1 chart while remaining below the SMA-200, highlighting a short- and medium-term constructive structure beneath an overarching long-term cap. Immediate resistance is marked by the Ichimoku Kijun at $63.99. MACD displays strong bullish momentum, ADX signals a rising trend, and RSI stands at 59.65. Both CCI and Bull/Bear Power confirm the presence of buyers, though Stoch RSI and Awesome Oscillator are neutral, indicating some hesitancy despite recent momentum.

Rangebound outlook as price faces resistance and volatility risk

Looking ahead to the next two to three trading sessions, XAG is expected to trade within a volatility band of $62.24–$65.36. The baseline scenario is for price to remain sideways in this established range. Should XAG climb above the $63.99 resistance level, further upside targets may emerge. Conversely, a break below $62.24 could expose renewed downside risk.

Anton Kharitonov, expert at Traders Union, notes that Silver's price action reflects a cautious standoff between short-term bullish signals and longer-term resistance. He observes that macro factors like a weaker US dollar and healthier manufacturing data are offering short-term support, but the enduring cap at higher moving averages limits his optimism. For now, the analyst prefers a defensive approach as long as the metal remains inside its current range. "Unless Silver breaks decisively above $63.99, I consider the upside limited and recommend waiting for clearer momentum."

Earlier, analysts noted that silver was demonstrating near-term bullish momentum, supported by technical strength and sustained investor interest, though longer-term resistance remained intact. The current setup reinforces this view, with traders advised to monitor the $63.99 resistance for a potential upside breakout that could shift the near-term trading landscape.

Source of Data: XAG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.