FX.co ★ XAG/USD, SILVER

Due to a chronic production deficit and increased industrial consumption, silver's fundamentals are tight. Because most silver is produced as a byproduct of base metals, mine production is still limited, and the market is expected to have a shortfall for the sixth year in a row in 2026. While jewelry and investment-driven demand is still more cyclical, silver's demand is sustained by robust use for industrial purposes, including solar panels, electric vehicles, electronics, and more generally, AI-related technology. On the 4-hour chart, silver is trading at $57.73. After a significant decline from the $69.85 high, price candles are still mixed as we maintain the 50-period EMA around $59.61. Lower highs are still being set by red and bearish candles. The 50-period EMA is serving as resistance around $62.81, while the volume profile displays a region of strength between $56 and $58. Below $61.71, the price is neutral or bearish as it tries to maintain this support throughout a general decline. Longer wicks on resistance rejection indicate that sellers are active at these levels. I would be interested in a short near $57.73 with a target of $55.60 based on the present technical outlook. The stop will be set above $59.36. The most noteworthy aspect of current silver trading is a persistent incapacity to recover and maintain territory above the $60 region rather than a major panic. Depending on the instrument and data source, intraday readings for July 13 showed silver trading in the high $59s to low $60s. Spot silver was close to $59.22, while futures were at $59.81 after starting at $59.98. Such actions frequently indicate a market in which rallies are becoming less powerful. Although they are still there, buyers don't seem to be taking charge. Rather, price action points to a metal that is still susceptible to the same macro factors that were covered in the first draft: the dollar, interest rates, and a cautious international environment. Because silver (XAG) prices often follow the movements of gold during significant market fluctuations, they may also be subject to selling pressure. The demand for both metals may decline if yield rises and the dollar appreciates. However, industrial demand will also have an impact on silver. As a result, the silver decline may be different. Gold and silver may continue to be under pressure until yields and the dollar start to decline as long as oil prices stay high and prospects for rate hikes rise. The similar bearish pressure is visible below the $64 region on the spot silver daily chart. At $55, the price is now very close to the major support region's lower boundary. A move towards the main accumulation zone between $45 and $55 will be possible if there is a break below $55. The likelihood of a significant recovery to $72 in spot silver is still high as long as the $45 support level is maintained. Silver prices, however, are still under bearish pressure and are expected to rise in the near future toward the $45 to $50 range. Strong bearish pressure is also visible on the spot silver 4-hour chart, as the price is now getting close to the base pattern's lower border. Prices are still under intense bearish pressure, as seen by the black dotted trendline that extends from the May 2026 highs. A move toward the $50 region will be possible if the price breaks below $55. Conversely, a break below $50 will signal additional declines toward $45, which is thought to be the last decline before the subsequent increase.