• Silver rallies over 1% from a daily low of $28.95.
  • Technicals suggest upward bias; potential 'double bottom' pattern forming.
  • Resistance levels: $30.00 (trendline), $30.84 ('double bottom' neckline), $32.29 (May 29 high), $32.51 (YTD high).
  • Support points: $29.00, $28.57 (June 26 low), $27.59 (April 15 low).

Silver recovered on Monday, registering a gain of more than 1% courtesy of broad US Dollar weakness even though US Treasury bond yields climbed. Economic data from the United States (US) was mixed, while US equities fluctuated between gainers and losers. The XAG/USD trades at $29.44 after hitting a daily low of $28.95.

XAG/USD Price Analysis: Technical outlook

From a daily chart standpoint, the grey metal is upward biased and still trading within the boundaries of a descending channel. Traders remain cautious, as shown by the Relative Strength Index (RSI), which is wavering around the 50-neutral line and indicates that neither buyers nor sellers are gathering momentum.

However, price action shows a formation of a ‘double bottom,’ though XAG/USD might clear key resistance levels, to confirm its validity.

Silver buyers need to clear the downslope trendline drawn from May highs, which is around $30.00. Once done, the ‘double bottom neckline’ will emerge at $30.84, the June 21 high. If cleared, this would confirm the bullish chart pattern. On further strength, XAG/USD could test the May 29 high of $32.29, ahead of the year-to-date (YTD) high of $32.51.

On the flip side, if XAG/USD falls below $29.00, the next support would be the June 26 low of $28.57. Once cleared, the next stop would be the April 15 swing low of $ 27.59.

XAG/USD Price Action – Daily Chart

Fed FAQs

Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.

In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed’s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.

Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.

 

Share: Feed news

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.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD clings to strong gains above 1.1000 as US-China trade war deepens

EUR/USD clings to strong gains above 1.1000 as US-China trade war deepens Premium

EUR/USD trades decisively higher on the day above 1.1000 on Wednesday as the US Dollar (USD) stays under persistent selling pressure on growing fears over a recession as a result of the US trade war with China. Later in the American session, the Federal Reserve will release the minutes of the March policy meeting.

EUR/USD News
GBP/USD holds above 1.2800 on broad USD weakness

GBP/USD holds above 1.2800 on broad USD weakness

GBP/USD stays in positive territory above 1.2800 heading into the American session on Wednesday.  After China's decision to respond to the US tariffs by imposing additional 84% tariffs on US goods, the US Dollar remains under pressure and helps the pair hold its ground ahead of FOMC Minutes.

GBP/USD News
Gold extends rally to beyond $3,050 as safe-haven flows dominate markets

Gold extends rally to beyond $3,050 as safe-haven flows dominate markets

Gold preserves its bullish momentum and trades above $3,050 in the second half of the day. Further escalation in the trade conflict between the US and China force markets to remain risk-averse midweek, allowing the precious metal to capitalize on safe-haven flows.

Gold News
XRP Price Forecast: XXRP ETF and Trump tariffs shaping XRP fundamental outlook

XRP Price Forecast: XXRP ETF and Trump tariffs shaping XRP fundamental outlook

XRP struggles to stay afloat, with key support levels crumbling due to volatility from macroeconomic factors, including United States President Donald Trump's reciprocal tariffs kicking in on Wednesday.

Read more
Tariff rollercoaster continues as China slapped with 104% levies

Tariff rollercoaster continues as China slapped with 104% levies

The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.

Read more
The Best brokers to trade EUR/USD

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025