Silver (XAG/USD) advanced more than 4% on Thursday, rebounding from a daily low of $61.51, which marked its lowest level since March 23. The rally followed an announcement by US President Donald Trump that he cancelled scheduled attacks against Iran, stating that final points of an agreement had been approved. At the time of reporting, XAG/USD was trading at $65.91 [1].
Despite the recovery, the technical outlook for silver remains bearish. The price is still trading below the 200-day Simple Moving Average (SMA) of $68.31, a key indicator for trend direction. The Relative Strength Index (RSI) has exited oversold territory, suggesting some buying interest, but remains below the neutral 50 level, indicating continued downside bias [1].
If silver manages to rise above the $67.00 mark, it could challenge the 200-day SMA, with the next resistance at $70.00. On the downside, immediate support is at the week's low of $61.50, with further support at $60.00 and then $54.39, which was the high on November 13, 2025, now acting as support [1].
The article also notes that silver prices are influenced by factors such as geopolitical instability, US dollar strength, interest rates, and industrial demand, particularly from the US, China, and India. However, the current market sentiment remains cautious, with technical indicators pointing to a bearish outlook unless key resistance levels are reclaimed [1].
CONCLUSION
Silver experienced a sharp rebound after hitting multi-month lows, but technical indicators suggest the market remains bearish below the 200-day SMA. Unless silver breaks above key resistance levels, downside risks persist, with immediate support at $61.50 and $60.00. Market participants are likely to remain cautious given the current technical setup.