Silver Prices Edge Higher on Support Clusters Amid Volatility

Silver prices are edging higher on Friday after a morning setback, but traders should be cautious of heightened volatility. The main trend has turned down, but the cluster of support around the $62.53 level is attracting value-seekers. This could lead to a two-sided trade as buyers defend the 50-day moving average.

The intermediate range for silver is between $54.78 and $71.18, with the 50% to 61.8% retracement zone falling within this area. The August 19 main bottom at $62.56 and the 50-day moving average at $62.53 are both key levels of support.

A trade through $68.33 would change the trend to up, but for now, traders should be wary of a sell-the-rally situation. Additional support comes from a cluster formed by the 61.8% level at $61.04 and 50% of the all-time high at $60.835.