Silver Price Forecast: XAG/USD extends decline as safe-haven flows ease

Source Fxstreet
  • Silver (XAG/USD) drops for a third straight day, tracking profit-taking as geopolitical risk premium eases.
  • US President Donald Trump signals two-week window before deciding on possible US intervention in Iran–Israel crisis.
  • The price hovers near $36.00, supported by the 100-period moving average on the 4-hour chart, intraday low is at $35.51.

Silver (XAG/USD) remains under pressure for a third day in a row on Friday, retreating further after US President Donald Trump announced he would hold off for two weeks before deciding whether the US should step into the escalating Iran–Israel standoff. This pause has eased some of the geopolitical risk premium that recently fueled safe-haven flows into precious metals, prompting traders to book profits and reassess positions as investors digest the shifting geopolitical landscape.

At the time of writing, Silver is trading around $36.00 during the American trading hours, recovering modestly after easing from an intraday low of $35.51. The metal found some support near its 100-period Moving Average (MA) on the 4-hour chart, which is acting as a key cushion for prices amid the current pullback.

From a technical perspective, Silver has begun to show signs of weakness in its recent uptrend, suggesting a potential deeper pullback as momentum wanes. After enjoying a steady climb within a neat rising channel since early June, the metal has now slipped below the channel’s lower boundary, signaling that buyers are losing grip, at least in the short run.

Currently, Silver is hovering just above its 100-period moving average around $35.65, which has reliably cushioned price dips in recent weeks. This dynamic support will be the first line of defense for bulls.

The Relative Strength Index (RSI) continues to drift lower after flashing a clear bearish divergence, reinforcing signs that bullish momentum is fading. At the same time, the Rate of Change (ROC) has slipped into negative territory, further confirming that Silver’s recent upward drive has lost steam and that the door is now open for a broader corrective phase.

Looking ahead, a sustained move back above the broken channel and a decisive break above $36.50 would be needed to revive bullish momentum and expose the next resistance around $37.00–$37.30. On the flip side, if Silver fails to defend the 100-period MA and slides below $35.50, the metal could come under increased pressure, with the next meaningful support seen at $35.00 and then $34.50. For now, the near-term bias remains cautiously tilted to the downside unless buyers regain control above $36.50 with conviction.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: GDP releases from major economies, BoC and Fed rate decisions to ramp up volatilityFinancial markets turn relatively quiet early Wednesday as investors gear up for key events.
Author  FXStreet
7 hours ago
Financial markets turn relatively quiet early Wednesday as investors gear up for key events.
placeholder
Google lays off its workforce to significantly invest in AIGoogle encourages its workers to boost their productivity by using AI. 
Author  Cryptopolitan
9 hours ago
Google encourages its workers to boost their productivity by using AI. 
placeholder
On-chain data showed that whales are aggressively accumulating more Bitcoin and EthereumOn-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
Author  Cryptopolitan
9 hours ago
On-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
placeholder
WTI holds near $69.00, five-week highs, following Trump’s renewed threat to RussiaWTI steadies after registering gains in the previous two successive sessions, trading around $68.90 per barrel during the early European hours on Wednesday.
Author  FXStreet
9 hours ago
WTI steadies after registering gains in the previous two successive sessions, trading around $68.90 per barrel during the early European hours on Wednesday.
placeholder
Gold price consolidates in $3,320-3,330 band; looks to Fed for meaningful impetusGold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
Author  FXStreet
9 hours ago
Gold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
goTop
quote