FX.co ★ XAG/USD, SILVER

Technical and Fundamental Analysis of Silver XAG/USD Silver (XAG/USD) slipped during the Asian session on Friday, giving back some of the gains recorded over the previous two trading days. The precious metal was last trading below $67.00, down around 0.30% on the day, although the decline remains relatively limited. With bearish momentum still lacking conviction, traders are holding back from aggressive selling ahead of the highly anticipated U.S. Nonfarm Payrolls (NFP) report, which could provide the next major catalyst for silver prices. The direction of the U.S. dollar and Treasury yields remains central to the near-term silver price outlook. Market expectations for a Federal Reserve rate hike in September have eased, while U.S. bond yields have also moved lower. This combination has kept the dollar near its weakest level in more than a week, providing underlying support for dollar-denominated commodities such as silver. A softer greenback generally makes precious metals more attractive to international buyers, helping XAG/USD retain a constructive tone despite its latest pullback. The upcoming U.S. employment report is therefore likely to strongly influence silver market sentiment. A stronger-than-expected NFP reading could revive expectations for tighter Federal Reserve policy, potentially lifting Treasury yields and the dollar while weighing on non-yielding precious metals. Conversely, weaker employment figures could reinforce expectations for a more cautious Fed, potentially keeping the dollar under pressure and giving silver additional room to recover. Traders are therefore closely watching the labor-market data for confirmation of the next monetary-policy direction. Silver’s recent recovery from the $63.30 area has also improved the broader technical picture. However, the metal has now approached a significant resistance region, meaning bullish traders may need to remain selective. The recovery has already carried XAG/USD toward the $67.00–$67.50 area, where previous attempts to move higher have encountered selling pressure. A sustained breakout above this region would be an important technical development, while repeated rejection could trigger another period of consolidation. From a technical analysis perspective, Silver (XAG/USD) is trading near $66.65 after recovering from lower levels, with the H4 chart showing a constructive structure but some hesitation near resistance. Demand remains established around the mid-$65 area, where buyers previously entered after the decline toward the $63.00–$65.00 region. This area created an accumulation base that supported the subsequent rebound. The rising 50-period Simple Moving Average (SMA) continues to provide broader dynamic support below the current price, while the H4 20-period SMA has moved closer to the market around the mid-$66 area and is now an important short-term reference. On the H4 timeframe, immediate supply is concentrated around $67.20–$67.50. This zone contains recent session highs, previous rejection points, and the upper boundary of the latest consolidation range. Sellers have already shown interest around these levels, making a decisive breakout necessary for buyers to establish stronger upside momentum. A sustained H4 close above $67.50 could strengthen the recovery structure and expose higher resistance levels. The H1 chart presents a more balanced short-term setup. Price is moving around the 20 SMA near $66.60–$66.80 after failing to maintain a sustained move above $67.00. The H1 50 SMA provides secondary dynamic support below, while the $66.00–$66.30 area has repeatedly attracted buyers and currently functions as an important intraday demand pocket. Holding above these moving averages would help preserve the short-term bullish structure. Key XAG/USD support is therefore concentrated around $65.50–$66.00, combining recent H4 demand with previous swing-low structure. A successful defense of this region could allow silver to retest $67.00–$67.50. On the downside, a decisive break below $66.00 would weaken the near-term setup and increase the probability of a deeper retracement toward the stronger H4 demand zone around the mid-$65 area. Until that breakdown occurs, silver remains range-bound with a mild bullish bias, while the $67.00–$67.50 resistance band remains the key level for buyers to overcome.