Silver (XAG/USD) experienced continued selling pressure for the second consecutive day on Friday, pulling back further from its over one-month high in the $89.35-$89.40 region reached earlier this week. During the Asian session, the price weakened below the mid-$81.00s and approached the weekly trough, signaling a notable short-term decline [1].
From a technical standpoint, the intraday breakdown below the 38.2% Fibonacci retracement level of the recent upswing from sub-$71.00 levels has favored bearish sentiment. Momentum indicators such as the Relative Strength Index (RSI) drifting toward the neutral 40 area and the Moving Average Convergence Divergence (MACD) turning more negative suggest that bullish pressure is fading in the near term [1].
Despite the pullback, XAG/USD remains above the 50% retracement level and the 100-period Simple Moving Average (SMA), indicating that the broader uptrend is still intact. Key support is identified at $80.11 (50% retracement), with further support at the 61.8% retracement ($77.95) and the 100-period SMA ($77.83). A break below these levels could lead to deeper losses. On the upside, resistance is seen at the 38.2% Fibonacci retracement ($82.27), followed by the 23.6% level ($84.94), and a move above these could expose the cycle high at $89.26 [1].
No specific market reactions or analyst opinions were provided in the article, but the technical analysis suggests a cautious outlook in the near term, with the broader uptrend still in place unless key support levels are breached [1].
CONCLUSION
Silver has retreated below $81.50, with technical indicators pointing to fading bullish momentum in the short term. However, the broader uptrend remains intact as long as key support levels hold. Investors should monitor these technical levels for potential shifts in market direction.