Silver (XAG/USD) rebounded on Thursday, climbing above $59.00 after reaching session lows of $57.22 on Wednesday. This recovery comes as the US Dollar weakened, providing support to precious metals that have been under pressure recently. Despite this uptick, silver remains in a bearish trend, having lost more than $3 so far this week and experiencing a nearly 35% sell-off in less than two months [1].
The Federal Reserve’s latest minutes indicated a continued commitment to combating inflation, but a divided market committee has left investors uncertain about the timing of future interest rate hikes. This uncertainty contributed to the US Dollar’s pullback, which in turn benefited silver prices [1].
Geopolitical tensions also played a role, with Iran and the US exchanging attacks for the second consecutive day. However, comments from US President Donald Trump suggesting that Iran “wants to make a deal so badly” have raised hopes that negotiations between Washington and Tehran may resume [1].
From a technical perspective, XAG/USD is trading at $59.13, with the four-hour Relative Strength Index (RSI) at 45.32, indicating neutral momentum, while the Moving Average Convergence Divergence (MACD) remains negative, signaling ongoing downside risk. Key resistance levels are identified at $61.00 and $62.50, with further upside potential toward the mid-June highs near $71.75 if these are breached. On the downside, support is seen at $55.60-$55.70, with additional targets at $51.40 and $48.64 if selling resumes [1].
CONCLUSION
Silver’s short-term recovery above $59.00 is attributed to a softer US Dollar and ongoing geopolitical tensions, but the broader trend remains bearish. Market uncertainty over Fed policy and technical indicators suggest that downside risks persist unless key resistance levels are reclaimed.