Silver Price Consolidates Amid Ongoing Energy Shock

The price of Silver has been consolidating in recent days as its bullish momentum begins to fade. The ongoing energy shock caused by tensions in the Middle East keeps inflation risks alive, and this uncertainty leaves the possibility of a rate increase later this year on the table. This prospect weighs heavily on Silver prices, increasing the opportunity cost of holding non-yielding assets such as Silver.

Despite this, the daily chart for XAG/USD still retains a mild bullish bias, with the price holding above the 50-day Simple Moving Average (SMA) at $61.28 and several key Fibonacci support levels. However, momentum indicators point to consolidation rather than further gains. The Relative Strength Index (RSI) near 55 is easing toward neutral, while the fading green bars on the Moving Average Convergence Divergence (MACD) histogram suggest weakening bullish momentum.

The Average Directional Index (ADX) near 26 indicates moderate trend strength. On the downside, initial support is seen at the 38.2% Fibonacci retracement at $62.89, followed by the 50% level at $61.68 converging with the 50-day SMA at $61.28 to form a key demand zone.