FX.co ★ XAG/USD, SILVER

Technical and Fundamental Forecast of Silver(XAG/USD) Silver (XAG/USD) traded little changed on Thursday, hovering just below the $60.00 mark as rising US Treasury yields continued to weigh on the precious metal. After failing to sustain gains above the $61.00 level on Wednesday, silver reversed lower before finding fresh buying interest around the mid-$58.00 region. While bargain hunters helped stabilize prices, stronger bond yields have limited the metal's recovery, keeping upside momentum in check. Investor sentiment also remains cautious as geopolitical tensions in the Middle East continue to escalate. The United States and Iran have now exchanged military strikes for a 12th straight day, while reports of attacks on Saudi-linked vessels in the Red Sea have fueled concerns over energy supply disruptions. The resulting surge in crude oil prices has pushed inflation expectations higher and driven US Treasury yields to fresh highs, reducing the appeal of non-yielding assets such as silver. If these conditions persist, silver may continue to struggle in the near term. Silver (XAG/USD) is trading around $58.70 on Thursday, showing signs of stabilization after a sharp pullback, although the broader technical picture remains tilted to the downside. Buyers have managed to defend recent lows, but the recovery still lacks enough strength to confirm a sustained trend reversal. On the H4 chart, silver continues to face strong resistance near recent swing highs, with sellers repeatedly stepping in whenever prices approach the 20-period Simple Moving Average (SMA). This moving average has become an important short-term ceiling, preventing the metal from building stronger upside momentum. The 50-period SMA remains above current price action and continues to slope lower, reinforcing the broader corrective trend. On the downside, buying interest has emerged around recent support zones, where previous declines attracted fresh demand and triggered temporary rebounds. However, unless buyers reclaim the moving averages, the overall structure remains one of consolidation with a slight bearish bias. On the H1 timeframe, price action reveals a tighter battle between buyers and sellers. Demand has developed around recent intraday lows, where silver has repeatedly bounced after testing support near key psychological levels. Meanwhile, resistance continues to appear during recovery attempts, especially around the 20 SMA, which has consistently acted as a short-term barrier. The 50 SMA adds another layer of resistance and serves as a trend filter. As long as silver remains below both moving averages, sellers retain the near-term advantage. A sustained move above the 20 SMA, however, could signal improving momentum and encourage additional short-term buying. Key technical levels remain important for the next move. Initial resistance is located around $59.60-$59.70, followed by the major psychological barrier at $60.00, where selling pressure has repeatedly emerged. A confirmed break above $60.00 could pave the way for a move toward $61.50-$63.00, matching previous resistance levels. On the downside, immediate support is seen around $57.50-$58.00, while stronger longer-term support sits near the recent July low around $54.77. A decisive break below the $58.00 area would strengthen the bearish outlook and increase the risk of a deeper correction. However, silver maintains a neutral-to-bearish technical outlook in the short term. The 20 SMA continues to cap recovery attempts, while the 50 SMA reinforces the broader downward trend across both the H4 and H1 timeframes. Traders should watch how price reacts around these moving averages, as a sustained move above them would improve the bullish outlook, while repeated rejections or a break below key support would confirm that sellers remain firmly in control.