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Silver prices (XAG/USD) edged higher on Friday as the U.S. Dollar (USD) weakened following disappointing Nonfarm Payrolls (NFP) data, which showed lower-than-expected job gains. However, the metal remains under pressure to post a weekly decline for the first time in three weeks. Technical indicators show the Relative Strength Index (RSI) hovering near the neutral 50 level, while the Moving Average Convergence Divergence (MACD) histogram has flattened, signaling a lack of clear directional momentum. Traders are closely monitoring whether the $23.50 support level can hold to prevent a deeper correction. For markets, the range-bound action in silver reflects broader uncertainty ahead of the Federal Reserve’s policy decision in late July. A weaker USD could provide temporary relief for commodities priced in dollars, but sustained gains for silver depend on a reversal in Treasury yields and a shift in Fed rate expectations. Traders may use the $23.50–$24.50 range as a key battleground for short-term positioning. Looking ahead, investors should watch the upcoming FOMC meeting and U.S. economic data, including inflation and retail sales, for clues on USD direction. If the RSI breaks below 50 or the MACD turns negative, it could signal renewed bearish pressure. Conversely, a breakout above $25.50 might reignite bullish sentiment.
