Silver Price Forecast: Rebound from oversold levels faces resistance at $52.50

• Support around $49.00 provides the base for a near-3% rebound in XAG/USD.
• Bullish momentum shows signs of strengthening as the RSI climbs out of deeply oversold territory.
• A move through $52.32 would bring $55.00 into view; key support remains at $48.87.

Lower US yields and a weaker US Dollar have helped Silver gain nearly 3% on Monday, rebounding from around $49.00. Energy prices have slumped amid speculation that the US-Iran conflict could be resolved. The white metal’s price action has seen no abrupt change, with XAG/USD quoted at $50.53 at the time of writing.

Silver Price Forecast: Recovery leaves bearish technical bias intact

Despite Monday’s partial recovery in XAG/USD, the technical bias remains to the downside. The 50-day Simple Moving Average (SMA) is crossing beneath the 100-day SMA, and the moving averages are aligned to confirm a bearish trend at the time of writing.

Sellers still have the upper hand, although the Relative Strength Index (RSI) suggests that buyers are building momentum. The indicator reached deeply oversold territory last Thursday, when Silver fell below $49.00 per troy ounce.

A bullish reversal requires XAG/USD to move above the 30 October high of $52.32. Beyond that level, the psychological threshold of $55.00 would be the next target, followed by the 20 October high of $58.61 and then $60.00.

Should prices retreat, last Friday’s low at $48.87 offers initial support. The psychological levels of $48.50 and $48.00 lie below it.

Silver Price Chart – Daily Price Action