Silver (XAG/USD) gained ground after two consecutive days of losses, trading around $58.10 per troy ounce during European hours on Tuesday [1]. Technical analysis indicates that the spot price remains within a descending channel pattern, with sellers maintaining control of market momentum as long as the price fluctuates within the parallel, downward-sloping trendlines [1].
The XAG/USD pair is trading below both the nine-period and 50-period Exponential Moving Averages (EMAs), reinforcing the bearish pressure. The clustering of short- and medium-term EMAs above the current price suggests that any rallies are likely corrective within a broader downtrend. The 14-day Relative Strength Index (RSI) stands at 37.04, below the neutral 50 line, indicating a lingering downside bias rather than an oversold condition [1].
Immediate support is identified at the seven-month low of $55.63, recorded on June 24. If the decline continues, the next target could be the lower boundary of the descending channel around $46.90. On the upside, resistance is seen at the nine-day EMA of $59.37, followed by the upper boundary of the descending channel at $60.60. A break above the channel could lead to a test of the 50-day EMA at $66.63 [1].
The article also notes that silver prices are influenced by factors such as geopolitical instability, US Dollar strength, investment demand, mining supply, and industrial demand, particularly from electronics and solar energy sectors. However, the current technical setup points to continued bearish momentum in the near term [1].
CONCLUSION
Silver is currently holding above $58.00 but remains under firm bearish pressure, with technical indicators suggesting further downside risk toward the $55.63 support level. Unless the price breaks above key resistance levels, the broader downtrend is expected to persist in the near term.