Silver Price Forecast: XAG/USD Tests Key Support at $35.50 Amid Bearish Pressure

Silver Price Forecast: XAG/USD Tests Key Support at $35.50 Amid Bearish Pressure

Silver (XAG/USD) continues to consolidate in a narrow range, hovering just above the crucial $35.50 support level during Wednesday’s session. While the broader technical setup remains bearish, a weakening US Dollar (USD) is providing temporary support to the precious metal.

Key Technical Outlook

• Support zone: $35.50 (immediate), followed by $34.10 and $33.40 if bearish pressure intensifies
• Resistance levels: $36.20 and $37.00 in the near term
• Trend: Short-term bearish bias remains intact
• Indicators: Bearish momentum is building, with RSI and MACD both showing downward inclination

If Silver breaks below the $35.50 mark, the next technical floors lie at $34.10 (June's earlier low) and $33.40, increasing the risk of a broader correction.

Market Sentiment: Risk Appetite Limits Safe-Haven Appeal

Despite rising bearish signals, Silver's downside has been cushioned by ongoing USD weakness and cautious optimism around the fragile Israel-Iran ceasefire. This truce has calmed broader geopolitical concerns, reducing demand for traditional safe-haven assets like Silver and Gold.

Meanwhile, continued speculation around Federal Reserve policy decisions and upcoming macro data releases could further influence Silver's trajectory.

What Traders Should Watch Next

• US GDP and inflation data for fresh macroeconomic cues
• Ceasefire stability in the Middle East and global risk sentiment
• US Dollar Index (DXY) behavior near 98.00 and its impact on commodities

Internal Links for Tredu.com Readers:

• US Dollar Index Outlook: Bearish Trend Remains Below 98
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