Silver (XAG/USD) faced selling pressure after reaching $27.25-$27.30 and has now declined for the third consecutive day in the European session. Despite this, the metal remains above a three-month low, currently trading around $27.00. The recent breakdown below the 200-day Simple Moving Average (SMA) and failures near $29.00 indicate a bearish outlook. Technical indicators show negative momentum, supporting further downside for XAG/USD.
To confirm the bearish trend, traders may wait for a drop below the weekly low around mid-$26.00s. This could lead to a decline towards $26.00 and then to the $25.65-$25.60 support area. A further downside target is the $25.00 psychological level, with potential support at $24.45-$24.40.
On the upside, a break above the $27.55-$27.60 resistance could trigger a short-covering rally, pushing XAG/USD above $28.00 towards the 200-day SMA at $28.80. However, the $29.00 level is likely to limit any upside movement.
Silver Daily Chart
Silver FAQs
Silver is a precious metal often traded by investors for its value and as a potential hedge during high-inflation periods. Its price can be influenced by geopolitical events, interest rates, US Dollar strength, and industrial demand. Silver prices tend to follow Gold’s movements, with the Gold/Silver ratio indicating relative valuation between the two metals.