Silver Price Forecast: XAG/USD extends decline below $54.00 to fresh YTD low

• Below $54.00 on Friday, Silver extends the previous day’s sharp decline.
• Technical indicators favour further losses within the downtrend established two months ago.
• Selling could meet any recovery attempt, with the $58.00 round-number level likely to limit gains.

At its lowest since November 2025, Silver (XAG/USD) comes under pressure during Friday’s Asian session as sellers seek to drive the decline further below $54.00. A second consecutive week of substantial losses remains in prospect for the white metal, while the technical picture continues to favour the downside.

Trading remains well beneath the 200-day Simple Moving Average (SMA) for XAG/USD. The bearish outlook is reinforced by repeated failures this week to establish a foothold above $58.00, the 38.2% Fibonacci level of the May-July decline. Meanwhile, the latest reading of -0.34 leaves the Moving Average Convergence Divergence (MACD) indicator in negative territory.

At 31.53, however, the Relative Strength Index (RSI) sits close to oversold territory. This suggests that, although downward momentum remains dominant, it may be nearing exhaustion rather than signalling a fresh wave of aggressive selling. Waiting for a sustained break beneath $54.00 would therefore be prudent before positioning for a continuation of the decline seen over roughly the past two months.

Any rebound would first encounter resistance in the $55.50 horizontal zone. A move above it could allow XAG/USD to challenge $58.00, followed by the psychological $60.00 level, the $61.50-$61.55 area and the 23.6% Fibonacci level around $63.00. Only by overcoming these barriers can XAG/USD relieve the existing bearish pressure and pave the way for a more durable recovery.

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

XAG/USD price action on the daily chart