FX.co ★ XAG/USD, SILVER

Silver H4 Outlook Update The silver price might bounce back as US authorities' purchases in the bond market rekindle concerns about money printing and debasement. The catalyst came when the US Treasury announced it would double down on buying maturing bonds. According to sources, Secretary Bessent may deploy up to one trillion dollars from the Treasury General Account to fund such operations. Nevertheless, market speculation suggests that the measures mentioned could provide temporary relief for the ongoing situation. The active repurchasing policy has reignited fears among investors about a possible US sovereign debt crisis, persistent inflation, and dollar weakness. Silver can also receive solid fundamental backing beyond the macroeconomic environment and monetary conditions. The demand situation is quite impressive for growth industries. The main drivers include the green energy shift, PV solar panels, EVs, and AI infrastructure. Silver prices might follow the anticipated bullish trend in gold prices. According to Commerzbank, safe-haven buying of gold is boosted by the heightened threat of US sanctions against Iran. In this regard, Commerzbank reveals that "the US government has expanded sanctions aimed at Iran's oil revenue stream, its maritime transport capabilities, airlines, technologies, gold purchases, and digital currencies. Third-party nations dealing with Iran have been warned about potential sanctions being placed upon them." According to Commerzbank, such a tightening of sanctions will contribute to existing uncertainties that are driving gold prices higher.

The silver (XAG/USD) sellers are still battling at the $70.00 resistance level, which triggered further downside for a second consecutive day on Tuesday. Silver moved into the mid-$67.00s zone in the first half of the European trading session. Nevertheless, given that the current technical structure remains positive, we must exercise prudence when betting on any further retracement. The XAG/USD has sustained its positive outlook amid the recent upside breakout above $66.55-$66.60. Besides, silver maintains itself comfortably above the 200-period SMA on the four-hour chart, reflecting the persistence of an uptrend in the white metal market. On the contrary, the RSI moves towards the neutral 50 level, whereas the MACD heads toward negative territory. These developments indicate a weakening of upward pressure on the XAG/USD pair rather than a complete reversal. On the downside, the nearest technical support is around $67.00, before the resistance breakdown level of $66.55- $66.60. These two levels were considered key to stabilizing the correction trend. A deeper downtrend will bring out the 200-period SMA level at $61.30 as the critical technical level where the overall bullish outlook may be reviewed if violated. From the bulls' viewpoint, they could wait for confirmation above $70.00 before preparing for further advances toward the $71.00 psychological level and the resistance zone around $71.55. Once above the $71.55 resistance zone, there will be an opportunity for further advances toward $72.00, then $72.55 and $73.00.