Silver stalls after bullish rebound as market awaits key U.S. sentiment data
Price action stalls below $36.63
Silver's bullish momentum from Thursday is hanging on Friday, June 13, as the metal trades within a narrow range ahead of the highly anticipated University of Michigan Consumer Sentiment data release.
The current session has so far produced minimal movement, with silver hovering near $36.32 after rebounding earlier from the $36.00 support zone.
- Silver forms bullish Dragonfly Doji after bouncing off 50 EMA support
- Price action stalls below $36.63 as traders await U.S. sentiment data
- Dollar reaction to sentiment data likely to dictate silver’s next breakout
Thursday’s price action delivered a sharp reversal from an early dip. Silver opened at $36.24 and dropped to a five-day low at $35.45, where the 50 EMA on the 4-hour chart provided a cushion. Buyers quickly absorbed the selling pressure, driving the price higher in the North American session and flipping the day into a bullish close at $36.45. This recovery formed a Dragonfly Doji candlestick pattern, a single-candle formation that often marks the start of a potential bullish reversal when appearing after a decline.
Silver price dynamics (April - June 2025). Source: TradingView
The pattern’s significance lies in its structure. A long lower wick indicates strong rejection of lower prices, while a close near the opening level signals a shift in short-term sentiment. The technical backdrop going into Friday opened the door for a follow-through rally, but price action has so far failed to gather traction.
Silver price remains range-bound following Thursday's bullish recovery
Silver has spent most of Friday consolidating within a 1.8% range between $36.00 and $36.63. Volume has been declining throughout the Asian and European sessions, suggesting that traders are in a wait-and-see mode. The hesitation is tied to the upcoming preliminary reading of the U.S. Consumer Sentiment Index. Forecast stands at 53.5, higher than the previous 52.2. An upside surprise in the data could strengthen the dollar, pressuring silver lower and threatening a breakdown beneath $36.00. Such a move would erase the current weekly gain of 0.9% and flip the week into loss.
On the other hand, if the sentiment data comes in weaker than expected, the dollar may soften. This would provide silver a window to break above the $36.63 short-term resistance and extend Thursday’s recovery into the weekend. Until then, silver remains range-bound, and market direction hinges on the upcoming data from the U.S. consumer front.
Silver extended its slide for a third day despite a weak dollar and erased June’s gains. Break below EMAs confirmed short-term weakness, with eyes now on the $35 support.
