Silver Price Forecast: XAG/USD bulls await break above $70.00 amid mixed setup

Silver (XAG/USD) remains below the $70.00 threshold, trading in a narrow range around the mid-$68.00s throughout the European session on Wednesday. The market is on edge for the release of the US Personal Consumption Expenditures (PCE) Price Index, which could provide fresh impetus for the pair. Despite being near the 200-period Simple Moving Average (SMA) on the 4-hour chart, the XAG/USD still shows a bullish near-term bias after breaking out above $66.55-$66.60 horizontal resistance last week.

However, the Moving Average Convergence Divergence (MACD) indicator suggests weakening upside momentum, with a slightly negative reading. The Relative Strength Index (RSI) is around 53, indicating neutral conditions after cooling from overbought levels. Support may be found near the mid-$67.00s, followed by the $67.00 mark and the $66.60-$66.55 resistance level.

Bulls may wait for sustained strength and a break above $70.00 before positioning for further gains towards the $71.00 and $71.55 levels. A move beyond $71.55 could open the door to gains beyond the $72.00 mark and beyond, heading towards the $73.00 and $73.40 regions. Factors such as geopolitical instability, inflation, US Dollar movements, investment demand, mining supply, and recycling rates can influence Silver's price.

Historically, Silver acts as a store of value, medium of exchange, and hedge during high-inflation periods, making it an attractive option for diversifying investment portfolios.