Silver Price Forecast: XAG/USD Struggles Below $36.00 as Risk Sentiment Improves

Silver Struggles to Maintain Momentum Above $36.00

Silver (XAG/USD) is trading slightly below $36.00 on Monday after retreating from last week's multi-year highs near $37.30. The precious metal briefly dipped to $35.50, a key support area and neckline of a potential bearish Head & Shoulders (H&S) pattern. The neckline zone between $35.45–$35.50 is critical for short-term price action.

Risk Sentiment Dulls Demand for Safe-Haven Assets

The European session opened with stronger equities, signaling a rebound in investor risk appetite. European indices are mostly in the green, aside from the UK’s FTSE 100. Wall Street futures also turned positive. These improvements in risk sentiment are weighing on traditional safe havens, including silver.

Despite ongoing geopolitical uncertainty, particularly regarding Iran’s next move after recent US airstrikes, the absence of direct retaliation toward US assets has cooled market fears of an immediate wider regional escalation. That has contributed to silver’s failure to break decisively above $36.00.

Technical Outlook: Bearish Pattern in Focus

Silver’s current price action shows signs of forming a Head & Shoulders reversal pattern, with a neckline at the $35.45–$35.50 zone. A confirmed break below this level could trigger bearish momentum and push prices toward $34.70 and potentially $33.90.

On the upside, $36.00 remains the key resistance. A daily close above this would invalidate the H&S setup and open the path to retesting $37.30 highs.

Internal Linking Suggestions (for Tredu.com):

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• XAG/USD Daily Technical Chart Analysis