FX.co ★ XAG/USD, SILVER

Silver opened the new week with a powerful recovery as buyers stepped back into the market following the aggressive selloff that dominated the first half of June. The metal surged toward the 70.70 region, supported by a weaker US Dollar and improving global sentiment after reports that the United States and Iran had reached a framework agreement aimed at easing geopolitical tensions. While the prospect of calmer conditions in the Middle East has boosted risk appetite across financial markets, silver continues to attract interest ahead of this week's Federal Reserve meeting. The combination of dollar weakness, lingering uncertainty surrounding the final details of the agreement, and renewed demand from technical buyers has helped the white metal stage its strongest rebound in several sessions. Buyers Regain Control After a Brutal Correction The daily chart shows that silver experienced a sharp reversal after peaking near the 88.50 area during May. Selling pressure intensified throughout early June, driving prices below several important support zones and eventually dragging the metal toward the 62.50 region. That decline marked one of the deepest pullbacks seen in months and temporarily shifted market control firmly into sellers' hands. However, the inability of bears to extend losses below the June lows attracted fresh buying interest. Since then, silver has produced a sequence of higher lows and stronger daily closes, indicating that buyers are gradually rebuilding momentum and attempting to stabilize the broader structure. Bollinger Bands Reveal Where the Battle Is Taking Place One of the clearest signals on the chart comes from the Bollinger Bands. The recent recovery started directly from the lower Bollinger Band near 62.50, a level that often highlights stretched bearish conditions and exhaustion among sellers. The sharp rejection from this area suggests that downside momentum became overextended and encouraged bargain hunters to return. Price has now recovered toward the Bollinger middle band near the 73.00–73.50 region, which represents the first major recovery barrier. As long as silver remains below this middle band, the current advance can still be viewed as a corrective rebound rather than a confirmed trend reversal. A decisive break above the middle band would significantly strengthen the bullish outlook and expose the upper Bollinger Band near 81.00. The recent widening of the Bollinger Bands during the decline also reflected elevated volatility, while the current stabilization hints that the market may be transitioning from aggressive selling into a more balanced recovery phase. Momentum Indicators Suggest Selling Pressure Is Fading Technical indicators are beginning to support the recovery narrative. The Relative Strength Index has rebounded toward the 47 level after spending time near oversold territory during the recent decline. Although RSI remains below the neutral 50 threshold, its upward slope indicates that bearish momentum is fading. MACD remains beneath the zero line, confirming that the broader trend has not fully shifted back to bullish territory. However, the histogram has started to contract, showing that downside momentum is losing strength. Meanwhile, the stochastic oscillator has surged sharply above the 80 level, reflecting strong short-term buying activity and reinforcing the idea that bulls are attempting to regain control after weeks of weakness. Resistance Levels Will Determine Whether Recovery Continues The immediate challenge for buyers sits around the 70.70 region where the market is currently trading. A sustained daily close above this area would confirm that recent buying pressure is gaining traction and could trigger a move toward 73.50. Beyond that level, attention would shift toward the declining 100-day Simple Moving Average near 77.20. This moving average acted as an important trend guide during previous advances and now serves as a significant overhead barrier. A successful break above both the Bollinger middle band and the 100-day SMA would dramatically improve sentiment and place the upper Bollinger Band near 81.00 back into focus. Support Zones Continue to Protect the Bullish Case Despite the encouraging rebound, support remains critical. The first notable floor now sits near 68.00, followed by the recent reaction low around 62.50. These levels represent the foundation of the current recovery structure. As long as silver remains above 68.00, buyers maintain a tactical advantage and can continue targeting higher resistance zones. A move back below this support would likely attract renewed selling pressure and raise the probability of another test of the June lows. Such a development would reinforce the broader corrective trend and delay any meaningful bullish recovery. Fed Meeting and Geopolitical Developments Remain Key Risks Fundamental risks remain elevated despite improving sentiment. The Federal Reserve meeting later this week has the potential to reshape expectations regarding interest rates and the US Dollar. Any signs of a less aggressive policy stance could provide additional support for silver. Conversely, a hawkish surprise could strengthen the Greenback and cap upside momentum. Geopolitical developments also remain a major variable. Although progress between Washington and Tehran has improved market confidence, the absence of a finalized agreement means uncertainty has not disappeared entirely. Any setback in negotiations could quickly restore safe-haven demand and increase volatility across precious metals. Conclusion Silver is showing the strongest signs of stabilization seen in weeks after successfully defending the 62.50 support zone and launching a meaningful rebound above 70.00. Buyers have regained short-term momentum, Bollinger Bands are signaling recovery conditions, and technical indicators suggest that bearish pressure is gradually fading. However, confirmation is still required. The market must overcome resistance near 70.70 and the Bollinger middle band around 73.50 before a broader bullish recovery can be confirmed. Until then, the current move remains a promising rebound within a larger corrective structure, but one that is increasingly tilting back in favor of the bulls.