Silver Price Pulls Back from Highs, Holds Above 21-Day EMA

Silver Price Pulls Back From Highs, Holds Above 21-Day EMA Support

Silver (XAG/USD) is seeing a volatile trading session on Thursday, falling from intraday highs around $36.84 and currently hovering near $36.40 during early US hours. While the metal is retreating from session peaks, technical structure remains broadly bullish as long as the price holds above the 21-day Exponential Moving Average (EMA).

XAG/USD Trades Within Rising Wedge

Despite short-term weakness, XAG/USD remains inside a rising wedge pattern, which could eventually signal a reversal. A confirmed break below the lower wedge support near $36.20 would open the door for a drop toward $35.00–$34.80, where stronger buying interest is expected.

Macro Data Sparks Volatility

The pullback in silver was partly driven by mixed US macroeconomic data:

• US Q1 2025 GDP contracted 0.5%, the first negative print in 3 years.
• Initial Jobless Claims fell to 236K, showing slight labor market resilience.
• US Factory Orders surged by 16.4% MoM, a massive upside surprise.
• Goods Trade Deficit widened to $96.6B, hinting at renewed export pressures.

While these numbers reflect a slowing overall economy, strong factory orders have encouraged short-term profit-taking in metals.

Political Pressure on the Fed Lingers

Adding to the uncertainty, US President Donald Trump criticized Fed Chair Jerome Powell, raising market fears over central bank independence. This has fueled renewed weakness in the US Dollar, providing underlying support for silver.

Key Technical Levels to Watch

• Resistance: $36.84, $37.00
• Support: $36.20 (21-day EMA), $35.00–$34.80
• Pattern Watch: Rising wedge formation (potential bearish breakout)

Related Articles on Tredu:

• XAG/USD Eyes $37: Bullish Breakout or Fakeout?
• USD Weakness Deepens on Fed Independence Fears
• US Q1 GDP Contracts: Recession Talk Back On?

Conclusion:
Silver is consolidating above key support, supported by a softening USD and economic headwinds in the US. However, caution is warranted if wedge support fails, with potential downside toward the $35 region.

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