Silver Prices Bounce as Dollar Fails to Extend Seven-Week High

The silver market saw a bounce on Friday as the dollar failed to extend its seven-week high. The spot price settled higher for a second session, but off its peak. This upward momentum is supported by the fact that the price closed above the 50-day moving average at $62.97.

According to technical analysis, the main trend is still down, but the minor trend turned up on Thursday. A trade through the swing bottom at $62.31 would signal a resumption of the downtrend, while a break through the September 9 high at $68.33 would turn the main trend up.

The intermediate range for silver is between $54.78 and $71.18, with its retracement zone providing support at $62.98 to $61.04. This zone has been tested several times over the past six sessions, including the new swing bottom at $62.31 on September 16.

The dollar remains a key factor in determining silver's price movement. A sustained push above Friday's high of 100.564 would put pressure back on the metal and test whether buyers will defend their gains. On the other hand, another failure to extend the dollar rally would give silver room to build on its recent move towards $67.34.