Silver Price Forecast: Will XAG/USD Continue Its Bearish Trend?

Silver (XAG/USD) has been on a downward trajectory, recently facing resistance at the 50-day moving average and testing key support levels. According to market analysts, the precious metal is currently bearish below the $38.51 mark, indicating that further downside is possible if prices cannot break above this resistance level.

Silver’s Price Action: Key Levels to Watch

The latest technical analysis of silver points to the 50-day moving average as a significant resistance zone. If silver fails to overcome this, it may face further declines. Experts from various trading platforms suggest that the $38.51 price level is a critical line in the sand for silver traders. A sustained break below this mark could see the price drop to lower support levels, such as the $36 region.

The Economic Factors Driving Silver’s Bearish Momentum

Several factors contribute to silver’s current bearish momentum. Global economic uncertainty, shifts in inflation expectations, and changes in interest rates are all having an impact. The strength of the US dollar also plays a key role. As the greenback gains traction, silver, which is priced in dollars, often experiences downward pressure.

Traders are also keeping a close eye on updates from major financial institutions. For example, the Federal Reserve’s decisions on interest rates can influence silver’s price by altering demand for precious metals. In this context, silver’s near-term outlook remains cautious unless economic indicators shift positively.

Also read: Gold at a Crossroads: Will Prices Tumble or Rebound in August 2025?