Silver Price Outlook: XAG/USD Tests Key Support at $32.60 in Bearish Triangle Pattern

Silver Price Outlook: XAG/USD Tests Key Support at $32.60 in Bearish Triangle Pattern

Silver (XAG/USD) is showing mild gains on Thursday but remains trapped in a bearish descending triangle pattern, which suggests a potential breakdown ahead. After reaching a weekly high of $33.70, the metal has consistently formed lower highs, indicating mounting selling pressure.

Bearish Technical Setup: Descending Triangle in Focus

The current chart setup shows Silver price action compressing within a descending triangle, with horizontal support between $32.60 and $32.70. This zone held on May 22 and again today, making it a crucial short-term level.

If the $32.60-32.70 support breaks, the next bearish targets lie at:

• $32.15 – the May 20 low
• $31.70 – lows from May 1 and 15

What’s Capping Silver Gains?

Despite the suspension of Trump’s tariffs, which typically boosts commodity sentiment, the resilient US Dollar (USD) is acting as a headwind for Silver. Stronger USD generally reduces demand for non-yielding assets like precious metals.

Upside Scenario: Watch $33.35

On the upside, a break above the triangle apex near $33.35 would invalidate the bearish setup and refocus attention on the $33.70 resistance, last seen as a rejection level.

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• What Is a Descending Triangle?
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