Silver (XAG/USD) is trading higher on Monday, with the price around $56.85, marking a gain of nearly 1.50% for the day after briefly dipping below $55.00 on Friday, its lowest level since December 2025 [1]. Despite this rebound, the metal lacks strong upside momentum, as ongoing Middle East tensions are supporting the US Dollar and energy-driven inflation risks are keeping expectations for a hawkish Federal Reserve alive [1].
TD Securities reports that speculative appetite for silver is fading, with money managers reducing their long exposure. This reduction in positioning is expected to apply downward pressure on prices due to weakening industrial and investment demand [1]. The technical outlook remains bearish, with XAG/USD trading well below both the 200-day and 100-day Simple Moving Averages (SMAs). The Relative Strength Index (RSI) is around 38, below the neutral 50 line, indicating only modest downside momentum, while the Moving Average Convergence Divergence (MACD) is slightly positive, suggesting tentative stabilization after the recent decline [1].
Immediate resistance is identified at $58.00, with further barriers at $60.00 and $65.00. A sustained move above these levels could ease selling pressure and target the 200-day SMA at $70.58 and the 100-day SMA at $72.24 [1]. On the downside, support is seen at $55.00, and a break below this level could open the way toward the $50.00 zone, where buyers may attempt to prevent deeper losses [1].
On the 4-hour chart, silver maintains a bearish near-term bias, trading below the 100-period SMA at $58.94 and the 200-period SMA at $62.43. The RSI at 47 is near neutral, and the MACD has turned mildly positive, indicating that the current recovery may be corrective rather than a clear trend reversal [1].
CONCLUSION
Silver is attempting to stabilize above $55.00 after recent declines, but the overall technical and positioning outlook remains bearish. Weakening industrial and investment demand, along with reduced speculative interest, suggest continued downside risks unless key resistance levels are reclaimed.