Silver (XAG/USD) fails to sustain its recovery momentum, declining below the $36.00 level as new selling pressures are seen during the Asian session. Even though there was some relief from the multi-day low at $35.40, the short-term technical picture is uncertain, with MACD indicating weakness but the RSI resting above 50. The key support is around the $35.40-$35.50 region, and a fall below that might push losses further towards $35.00 or even to $34.45. On the other hand, sustained strength above $36.20 might bring a retest of the $37.00 level and continuation of the large-scale uptrend.
KEY LOOKOUTS
• A firm break below this zone would initiate further bear pressure towards $35.00 and $34.45.
• The rebound, if any, is likely to encounter initial resistance in this area, with more powerful bullish pressure required to revisit $37.00.
• The MACD is indicating bear momentum, and the RSI still being above 50 indicates cautious trading on the cards.
• A continuation move beyond this level would confirm the resumption of the three-month uptrend, targeting highs in the region of $37.30–$37.35.
Silver (XAG/USD) trades under strain below the $36.00 handle, unable to sustain a recent rally from the multi-day low around $35.40. In spite of indications of vibrancy in general market sentiment, the metal is exposed to fresh selling pressure, which is indicative of uncertainty among bulls. The technical chart is mixed in outlook—while the MACD indicates faltering momentum, the RSI trading above 50 a sign of weak bearish conviction. Traders will probably wait for a definitive break below the $35.40 support or above the $36.20 resistance before entering a direction.
Silver (XAG/USD) trades just below $36.00 as buyers can’t maintain momentum. Support at $35.40 is key, while resistance at $36.20 caps upside. A break in either direction might determine the next move.
• Silver trades around $35.85, falling 0.70% under renewed selling pressure.
• The rally from the $35.40 multi-day low has faltered, reflecting poor bullish conviction.
• MACD registers a bearish crossover, but RSI > 50 indicates limited conviction on the downside.
• Solid support is present around the $35.40–$35.50 horizontal area.
• A breach below this support could see further losses toward $35.00 and $34.45.
• Resistance is near $36.00–$36.20, limiting immediate recovery attempts.
• A prolonged break above $37.00 may initiate a new wave of bullishness, extending the 3-month bull trend.
Silver continues to be in the spotlight with investors balancing wider market factors, such as inflation direction, interest rate forecasts, and political tensions. The precious metal keeps drawing attention as an economic uncertainty hedge, particularly with global central banks trying to find a fine line between growth support and inflation control. While other asset classes such as equities and bonds move on policy signals, silver continues to hold value because it is both an industrial and a safe-haven asset.
XAG/USD DAILY PRICE CHART
SOURCE: TradingView
In addition, demand for silver is underpinned by its fundamental contribution to green technologies, such as solar panels and electric cars, that are picking up pace around the world. As governments continue to accelerate clean energy transitions, industrial demand for silver will continue to be firm. This fundamental demand, combined with changes in investor sentiment, will most likely contribute to setting the medium- to longer-term outlook for the metal, irrespective of near-term market action.
TECHNICAL ANALYSIS
Silver (XAG/USD) is also giving mixed signals, prompting caution amongst traders. The daily chart MACD has gone into the negative zone, meaning a possible change in momentum on the downside. Yet, the RSI remains above the neutral 50 level, indicating bearish strength is not yet fully established. Immediate support is seen between $35.40 and $35.50, a range that has supported recent falls. On the positive side, silver is resisted around the $36.00–$36.20 level, and only a firm breakdown above this would set the stage for a retest of the $37.00 level and higher. Until such time, price action could stay range-bound and responsive to general market signals.
FORECAST
In the event that Silver (XAG/USD) holds above the $35.40 support level and cracks decisively above the $36.20 resistance, it would tend to confirm fresh bullish momentum. Such an extended push past this point could set the stage for a test of the $37.00 level, which has served as a significant ceiling in recent weeks. A breach past $37.00 could push prices further toward the $37.30–$37.35 zone, which would continue the general uptrend that has been underway since several months.
Conversely, a lack of support at $35.40 can initiate higher selling pressure. The breakdown of this level may expose Silver to a fall towards the psychological level of $35.00, with additional declines likely targeting the $34.75 and $34.45 support levels. This move would indicate a change in sentiment and can initiate short-term bearish positioning, particularly if general risk-off sentiment or dollar strength increases.
