Silver (XAG/USD) has experienced selling pressure for three consecutive days, trading around $33.00 during the Asian session, nearing a one-week low. The price has settled below the 23.6% Fibonacci retracement level at approximately $30.80, indicating potential for further losses.
Oscillators on the daily chart remain in positive territory, hinting at possible support near the 38.2% Fibonacci level between $32.95 and $32.90. Bears may seek confirmation through a break below this zone, with further declines potentially targeting the 50% Fibonacci level around $32.55-$32.50, and ultimately the $32.00 mark or the 61.8% Fibonacci level.
Key Resistance Levels
Conversely, the 23.6% Fibonacci level at $33.40 may act as an immediate resistance. A sustained move above the Asian session high near $33.55 could propel prices towards the $34.00 level and the multi-month peak at $34.20-$34.25. Further gains could encounter resistance near $34.55 and $34.85.
Silver prices are influenced by various factors, including geopolitical situations and economic conditions. Its safe-haven status plays a role, as does its pricing in relation to the US Dollar, along with industrial demand, particularly in electronics and solar energy.
The relationship between Silver and Gold is also notable, as Silver often follows Gold’s price movements. The Gold/Silver ratio helps assess the relative valuation of the two metals, with variations suggesting potential undervaluation of either metal.
With Silver encountering selling pressure for three consecutive sessions and edging lower towards a one-week low, traders should take note of key technical levels. The decline below the 23.6% Fibonacci retracement level signals that further downside remains a possibility. However, oscillators on the daily timeframe still point to positive momentum, which means support zones must be monitored closely.
For those looking at downside risk, the 38.2% Fibonacci zone between $32.95 and $32.90 takes prominence. Should sellers maintain control and push below this mark with conviction, further losses towards $32.55-$32.50 may be in store. If that level also gives way, $32.00 could come into focus, aligning with the 61.8% Fibonacci retracement. Each step lower will likely require confirmation before fresh momentum develops, yet a cascading breakdown would not be out of the question.
On the other hand, upside moves find initial barriers near $33.40, where the 23.6% Fibonacci retracement resides. If that level is cleared decisively, buyers may attempt to lift prices beyond $33.55, a mark set during the latest Asian session highs. A move above this could act as a springboard towards $34.00, before encountering resistance near the multi-month peak between $34.20-$34.25. Beyond this, the path becomes more difficult with further hurdles at $34.55 and $34.85.
Market Influences On Silver
Given that Silver’s valuation is tied to macroeconomic factors, geopolitical conditions, and currency fluctuations, all these aspects should remain under watch. Its close tie to the US Dollar means any shifts in monetary policy or inflation data could prompt sharp moves. Industrial activity also plays into sentiment, particularly given Silver’s application in electronics and solar energy.
The long-standing correlation between Silver and Gold also remains a factor. Typically, Silver follows Gold’s broader trends, but discrepancies between the two can reveal opportunities—the Gold/Silver ratio being one way to measure that relationship. Fluctuations in this ratio may indicate whether one metal is over- or undervalued relative to the other, allowing traders to make informed decisions about positioning.
Ultimately, whether capitalising on retracements or breakouts, attention to both chart structure and external market forces will be essential in the weeks ahead.
