Silver (XAG/USD) extended its losses for the second consecutive day, trading around $56.80 per troy ounce during European hours on Thursday, after pulling back from the nine-day Exponential Moving Average (EMA) [1]. Technical analysis indicates that the spot price remains slightly below the upper boundary of a descending channel, reflecting persistent bearish domination as sellers consistently prevent a breakout and maintain the overall bearish structure [1].
The near-term bias for XAG/USD remains bearish, with the price holding below both the nine-day and 50-day EMAs. The shorter EMA is aligned beneath the longer one, and the spot price is trading under both, signaling dominant downside pressure. The 14-day Relative Strength Index (RSI) is at 35, hovering just above oversold territory, which suggests weak but not extreme selling momentum [1].
If the decline continues, XAG/USD may test the primary support at the seven-month low of $55.63, recorded on June 24. Further declines could push the price toward the lower boundary of the descending channel around $45.50. On the upside, immediate resistance is seen at the upper boundary of the descending channel around $58.50, followed by the nine-day EMA at $58.68. A sustained break above this resistance zone could shift the bias to bullish and support a move toward the 50-day EMA at $65.93 [1].
No market reactions or analyst opinions beyond technical analysis are discussed in the source. The article also notes that silver prices are influenced by factors such as the US Dollar's strength, investment demand, and industrial usage, but does not provide specific forward-looking statements or forecasts [1].
CONCLUSION
Silver continues to face downside pressure, with technical indicators pointing to a bearish near-term outlook and the potential for further declines toward recent lows. Unless XAG/USD breaks above key resistance levels, the bearish trend is likely to persist. Market participants are closely watching support and resistance zones for signs of a reversal or continued weakness.