Silver (XAG/USD) is under pressure below $32.00 and unable to find enough bullish traction while trading close to a two-week low. The technical bias is in favor of bearish traders, with the oscillators going south and warning of additional downside risk. A breakdown below the 100-day SMA, which stands at $31.30-$31.25 currently, may pick up pace losses towards major support levels at $31.00, $30.25, and even the psychological $30.00 level. On the upside, $32.40-$32.45 acts as resistance, and a breakout above $33.00 would be required to change the sentiment to bullish. Until that happens, silver is exposed to further selling.
KEY LOOKOUTS
• An important support level at $31.30-$31.25; a strong break below here may initiate further bearish momentum in XAG/USD.
• Daily chart oscillators point to increasing negative momentum, hinting at the continuation of the recent downtrend towards important support levels.
• Any attempt at a recovery is met with resistance at $32.40-$32.45, and a break above $33.00 is required to restore bullish momentum.
• A persistent fall below $31.00 may pave the way for a fall to $30.00, a key psychological level that will decide further direction.
Silver (XAG/USD) is under selling pressure below $32.00, with bearish momentum building as technical indicators suggest further downside risks. The $31.30-$31.25 100-day SMA support is a critical level to monitor, as a clear break below this range could hasten losses towards the psychological $30.00 level. Oscillators on the daily chart indicate a continuation of the seven-day-old downtrend, with the next significant supports at $31.00 and $30.25. On the positive side, silver has immediate resistance at $32.40-$32.45, and then the key $33.00 level, which needs to be broken for a bullish turnaround. Until then, XAG/USD continues to be exposed to further falls.
Silver (XAG/USD) continues to be pinned below $32.00, with bear strength building. A breakdown below the 100-day SMA of $31.30-$31.25 will see further falls towards $30.00. Resistance is at $32.40-$33.00, and there must be a breakout for a bullish turn.
• XAG/USD is weak, unable to find bullish traction while trading close to a two-week low.
• The $31.30-$31.25 area is a key support; a breakdown here may lead to further losses.
• Oscillators on the daily chart indicate growing negative traction, favoring a continuation of the downtrend.
• A sustained break below $31.00 may drive silver towards $30.25 and the psychological $30.00 level.
• Any recovery attempt faces resistance at $32.40-$32.45, with a breakout above $33.00 needed for bullish momentum.
• A move beyond $33.00 could open the door for a rally toward $33.40 and the $34.00 mark.
• If silver breaks below $30.00, further downside may lead to the December 2024 low near $28.80-$28.75.
Silver remains a key asset in the global commodities market, widely valued for its industrial applications and investment appeal. Since it is a precious metal, it features prominently in electronics, photovoltaics, and medical apparatus, making its demand more dependent on technological progress and economic expansion. Investors tend to use silver as an inflation hedge and insurance against economic uncertainty, valuing its dual role as an industrial commodity and a store of wealth. Moreover, geopolitical tensions and monetary policies also affect its attractiveness, as market players turn to safe-haven assets during times of uncertainty.
SILVER Daily Price Chart
Chart Source: TradingView
The increasing focus on renewable energy has also added to silver’s long-term prospects, especially in the production of solar panels, where it is an essential material. The demand for electric cars and the development of 5G technology also add to its utility in the new economy. Although gold tends to take center stage, silver’s low cost and industrial usage appeal to investors and producers alike. As the global economic landscape continues to change, silver remains a vital component in a variety of industries, solidifying its position in both industrial uses and investment channels.
TECHNICAL ANALYSIS
Silver (XAG/USD) is still under selling pressure below $32.00, with major support lying in the vicinity of the 100-day SMA around $31.30-$31.25. A break below this level for an extended period may signal further bearish potential, with the $31.00 and even psychological $30.00 levels in sight. Oscillators on the daily chart are increasingly negative, pointing to a continuation of the recent downtrend. On the upside, near-term resistance is at $32.40-$32.45, with a clean breakout above $33.00 needed for bullish confirmation. Until now, silver’s technical perspective recommends careful trading as it is finding it difficult to establish a decisive directional bias.
FORECAST
Silver (XAG/USD) succeeds in staying above the important support zone of $31.30-$31.25 and develops bullish strength, it may try to recover towards higher resistance levels. A move above the immediate resistance of $32.40-$32.45 would be the initial indication of strength, and buyers can propel prices towards the important $33.00 level. Persistent demand at this level may push silver towards the high of $33.40 for the month, with additional increases potentially stretching to the psychological figure of $34.00. If the mood in the market shifts in favour, silver can extend its uptrend to $35.00 and beyond in subsequent sessions.
On the negative side, silver is still exposed as long as it holds below $32.00, with the 100-day SMA of $31.30-$31.25 being a critical support level. A clean break below here might create a way for the losses to extend, and the next significant support would be at $31.00. If the selling force increases, XAG/USD might drop towards $30.25 and the psychological $30.00 level. A prolonged dip below $30.00 would indicate stronger bearish pressure, likely pulling silver down to $29.55-$29.50 and even the December 2024 low of $28.80-$28.75. Such a move would reaffirm a near-term bearish trend, a strong buy interest being needed to halt the slide.
