Silver (XAG/USD) Daily Outlook Update Silver (XAG/USD) continues to fall on Friday, down more than 5%, with prices dropping below $50 and hitting their lowest since November 2025. Silver prices are set to record their biggest monthly decline this month, down almost 18%, the largest since June, when silver fell 22%. The decline is part of a broader downtrend in precious metals, as Gold (XAU/USD) has also fallen below $4,000 to levels not seen since October 2025. Precious metals have sold off sharply following the breakout of the Middle East war, with oil prices spiking and forcing central banks, especially the Fed, to raise interest rates to curb inflation. The high cost of loans makes investing in assets like silver less favorable because it does not yield any income. Analysts expect the Fed to raise rates again in December, after leaving rates stable at 3.75% to 4.00% on Wednesday. Silver is currently more than 60% down from its all-time high of $121 in January. This fall may be due to a forced sale, as the tech sector declines while firms are forced to spend heavily on artificial intelligence. The XAG/USD pair on the daily chart is moving lower, well below the 50-day, 100-day, and 200-day Simple Moving Averages (SMAs), confirming an unambiguous bearish trend. The current downtrend line has been breached at $60 and now acts as resistance. At the same time, the momentum indicators confirm the downward pressure as the Relative Strength Index (14) is at 23 and is in the oversold zone, while the MACD line is below the zero line with a negative value, indicating the strength and validity of the downtrend supported by a high ADX at 39. Positively, resistance arises immediately on the horizontal line at $50, then $55, before moving onto the broken trendline level at $60. This level coincides with the 100-day and 50-day SMA at $61, creating a tight resistance pattern, with the 200-day SMA at $70.39 acting as the far-away resistance ceiling. On the other hand, the next support is the horizontal level of $45, with possible losses if selling pressure increases. Though the market seems oversold, it will take a strong rise above the $50-$55 level to alleviate some bearish pressure.
