Silver Price Forecast: XAG/USD falls below $57.50 as trading range support remains crucial

• From its weekly peak, Silver continues the retreat that began late in the overnight session.
• Aggressive bearish positioning calls for caution given the technical backdrop.
• Further downside requires confirmation from a break below the trading range.

Below the mid-$57.00s in Wednesday’s Asian session, Silver (XAG/USD) extends its decline from the weekly high near $58.60 reached the day before. Yet the white metal continues to trade within a range established over the past week. With prices still comfortably above last Wednesday’s three-month low, bearish traders have reason to remain cautious.

Energy-related inflation risks are keeping expectations of a US Federal Reserve (Fed) rate rise firmly in play, helping the US Dollar (USD) hold steady above Tuesday’s near-three-week low. Geopolitical uncertainty is also lending support to the safe-haven dollar. Together, these factors are putting some pressure on XAG/USD.

A modestly positive reading has emerged on the Moving Average Convergence Divergence (MACD) indicator, while the Relative Strength Index (RSI) stands around 48, close to the neutral 50 area. Taken together, these indicators suggest momentum is stabilising. They do not, however, signal that the overhead trend resistance marked by the 100-period Simple Moving Average (SMA) on the 4-hour chart has been overcome.

Confirmation of further downside would therefore require a decisive breach of range support near $56.80. Such a break would support the case for deeper losses towards $57.00–$56.50, an area that could serve as an informal reaction zone rather than a clearly established technical floor. On the upside, the range ceiling around $58.00-$58.20 may provide the first obstacle, followed by the overnight swing high near $58.60.

Beyond that, XAG/USD could regain $59.00 and advance towards the 100-period SMA resistance near $59.51. Only a sustained move above that barrier would alleviate the prevailing bearish bias and pave the way for a more constructive recovery. Even so, the wider picture suggests that attempts to recover are more likely to attract selling.

(The technical analysis of this story was written with the help of an AI tool. Find out more.)

XAG/USD on the 4-hour chart