Silver Price Forecast: XAG/USD recovers from three straight-day losses target $23.00

XAG/USD reached a new-year low at $22.03.
The daily chart depicts a downtrend, but a double-bottom pattern cap further losses.
Failure to break above $22.50-60 in the 1-hour chart, silver will resume its downtrend.

Christian Borjon Valencia FXStreet

After losing for three straight days and reaching a new 2021 low at $22.03, Silver recovered is trading at $22.48, recording a 0.97% gain, at the time of writing.

XAG/USD daily chart

Silver is in a downtrend, as the daily moving averages (DMA’s) remain well above the spot price. XAG/USD is trading near 2021 lows, within the $22.00-50 range. The first support on the downside would be the September 20 low at $22.03. A break of the latter would expose September 24, 2020 low at $21.65.

On the flip side, a double-bottom pattern is under formation. A break above $23.00 could expose $24.00 as the first resistance level. A daily close above that level will push XAG/USD towards the 50-day moving average at $24.24, followed by the September 3 high at $24.86.

The “neckline” of the double-bottom lies in that area. A decisive break of that supply zone could push the price towards the confluence of the 100 and the 200-DMA around $26.00.

The Relative Strength Index is at 33, aiming higher, but the downtrend remains intact as it remains below the 50-midline.

XAG/USD 1-hour chart

Zooming into the 1-hour chart, XAG/USD is in an uptrend. However, lying around the $22.50-60 range, a downslope trendline capped the upside movement. A break above the latter could pave the way for further gains. The first resistance would be the 100-simple moving average (SMA) at $22.78. The following supply zones would be $23.00 and the 200-SMA at $23.81.

On the flip side, failure at $22.50-60, then XAG/USD could resume its downtrend. The first support would be the 50-SMA at $22.38. The following demand zones would be $22.16 and 2021 low at $22.03

The Relative Strength Index is at 53, heading towards the 50-midline. If the RSI moves beneath the latter, it could exert downward pressure on XAG/USD.

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

EUR/USD gains traction to near 1.1800 as tariff uncertainty weighs on US Dollar

The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar weakens against the Euro amid US tariff uncertainty. The release of the US January Producer Price Index report will be in the spotlight later on Friday.

GBP/USD treads water near 1.3500 as BoE-Fed divergence debate stalls

GBP/USD spent Monday spinning in place as market participants await a fresh catalyst to break the pair out of its recent range. The BoE's February hold came with a surprisingly dovish 5-4 split, and UK Consumer Price Index data last week showed inflation easing to 3.0%, reinforcing the case for earlier rate cuts, with most economists now looking to April or March for the next move.

Gold climbs above $5,200 on geopolitical tensions, trade uncertainty

Gold price jumps to around $5,230 during the early Asian session on Tuesday. The rally of the precious metal is bolstered by heightened geopolitical tensions and global trade uncertainty following US tariff decisions. Traders brace for the US January Producer Price Index report on Friday for fresh impetus.

Solana DeFi platform Step Finance to close operations following treasury hack

The Solana based decentralized finance platform Step Finance announced it will end all operations effective immediately following a breach that drained its treasury.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.