- XAG/USD hovers around $20.85, attempting to stabilize after a significant drop from $23.30, marking a precarious position near a six-month low.
- Silver could extend its losses if it fails to conquer $21.69.
- Short-term consolidation between $20.69 and $21.00 offers a tight trading range, with potential upside resistance at $21.28 and downside support near $20.50.
Silver price (XAG/USD) remained heavy on Wednesday after last week’s more than 6% losses, which witnessed the white metal traveling from around $ 23.30, to a new six-month low of $20.69. However, a downtick in US Treasury bond yields saw XAG/USD trimming some of its losses, exchanging hands at $20.85, down 1.55%.
From a daily chart perspective, the XAG/USD is set to extend its losses, also exacerbated by the break of a ten-month-old upslope support trendline at around $21.65, which opened the door for a fall toward $20.69. If XAG/USD remains below $21.00, that could put into play a re-test of the daily low of $20.69, followed by a drop to the year-to-date (YTD) low of $19.92. Conversely, if Silver's price, climbs past $21.65, the $22.00 figure would be up for grabs.
Short-term, the XAG/USD is consolidating at around the $20.69 - $21.00 area, as seen by the contraction of the Bollinger bands, while price action remains capped on the upside by the 20-day Exponential Moving Average (EMA), and the bottom band on the downside. If Silver buyers lift prices past $21.00, the next stop would be the upper band at $21.28, followed by the October 3 high at $21.39. Conversely if the non-yielding metal drops below $20.69, immediate support would be in the $20.50 area.
XAG/USD Price Action – Hourly chart
XAG/USD Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Next on the upside comes the 2025 peak
AUD/USD maintained its constructive outlook well and sound, advancing for the fourth day in a row and surpassing the key barrier at 0.6300 the figure with certain conviction.
EUR/USD: Further gains retarget 1.1470
EUR/USD alternated gains with losses around the 1.1350-1.1360 band in a context of further weakness in the US Dollar and a generalised improved mood in the risk-associated assets.
Gold trades with marked losses near $3,200
Gold seems to have met some daily contention around the $3,200 zone on Monday, coming under renewed downside pressure after hitting record highs near $3,250 earlier in the day, always amid alleviated trade concerns. Declining US yields, in the meantime, should keep the downside contained somehow.
Solana ETF to debut in Canada after approval from regulators
Solana ETF will go live in Canada this week after the Ontario Securities Commission greenlighted applications from Purpose, Evolve, CI and 3iQ. The products will allow staking, enabling investors to earn yield on their holdings.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.