- Silver price remains sidelined after rising to the highest levels in one year.
- Overbought RSI, multiple immediate resistances challenge XAG/USD buyers.
- Silver sellers stay off the table beyond $24.50.
Silver price (XAG/USD) remains firmer at $25.80, despite recent inaction at the highest levels in one year during early Friday in Asia. In doing so, the bright metal justifies the overbought RSI conditions, as well as fears of bulls amid a bumpy road towards the north. However, multiple supports and bullish MACD signals keep the XAG/USD buyers hopeful.
That said, the XAG/USD pullback needs validation from a 10-month-old previous resistance line, around $25.50.
Even so, the convergence of the 61.8% Fibonacci retracement level of the metals moves between May 2021 to September 2022 and a 23-month-old downward-sloping trend line, near $24.50, appears a tough nut to crack for the Silver sellers.
In a case where the Silver price remains bearish past $24.50, the odds of witnessing a gradual decline toward the 50% Fibonacci retracement level surrounding $23.20 can’t be ruled out.
On the flip side, the $26.00 round figure prods the XAG/USD bulls ahead of the 78.6% Fibonacci retracement, around $26.35.
Following that, a broad area comprising tops marked since July 2021, around $26.95-75, quickly followed by the $27.00 round figure, will be in focus.
Overall, the Silver price is likely to remain firmer even if the short-term pullback appears imminent.
Silver price: Daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD slumps below 1.0900 ahead of Fed decision
EUR/USD stays under bearish pressure and trades slightly below 1.0900 on Wednesday. The cautious market mood ahead of the Federal Reserve's monetary policy announcements supports the US Dollar and makes it difficult for the pair to hold its ground.
Gold pulls away from record-high, holds steady above $3,030
Gold stays in a consolidation phase after having set a new record-high above $3,040 earlier in the day. Investors refrain from taking large positions before the Federal Reserve announces monetary policy decisions and releases the revised Summary of Economic Projections.
GBP/USD drops toward 1.2950 on renewed USD strength ahead of Fed decision
GBP/USD pulls away from the multi-month high it touched above 1.3000 and edges lower toward 1.2950 on Wednesday. The pair struggles with the US Dollar gathering strength amid a broad risk-aversion, as all eyes turn to the Federal Reserve’s interest rate decision for fresh impetus.
Federal Reserve set to keep interest rate unchanged amid US recession fears and Trump tariff concerns
Market participants widely anticipate the US central bank to leave policy settings unchanged for the second consecutive meeting, after cutting the interest rate by 25 basis points (bps) to the 4.25%-4.5% range in December.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.