Silver Price Forecast: XAG/USD tests key trendline support

Silver (XAG/USD) reverses course during the American session on Tuesday after spending most of the day drifting lower from an intraday high of $36.20. At the time of writing, the metal is trading near $35.80, slightly above the session low of $35.28, but still down around 0.65% on the day as traders test key trendline support.

Last week, Silver pushed to fresh 13-year highs as investors flocked to the metal for its safe-haven appeal. Strong industrial demand and tightening supply added fuel to the surge. However, the momentum has cooled since then, with the recent dip reflecting healthy profit-taking and reduced liquidity in the market.

From a technical perspective, Silver’s daily chart remains constructive but is flashing early signs of fatigue. Tuesday’s drop pulled XAG/USD back toward its rising trendline support, which has guided the uptrend since mid-April. This trendline, reinforced by the 21-day Exponential Moving Average (EMA) near $35.50–$35.60, has repeatedly acted as a springboard for fresh buying.

A decisive daily close below this zone would raise the risk of a deeper correction, potentially exposing the next key support around $34.50 — a former resistance level now expected to act as a solid floor if the pullback deepens.

Momentum indicators highlight this tug-of-war between buyers and sellers. The Relative Strength Index (RSI) has cooled to 56.50, down from recent overbought conditions but still comfortably above the neutral 50 level, suggesting the broader trend retains a bullish bias. Meanwhile, the MACD histogram has shifted marginally negative, indicating a waning upward momentum in the near term. Price action shows repeated long lower wicks on recent candles, underscoring that bulls continue to step in aggressively on dips.

If Silver manages to sustain a bounce from current levels, the rally could regain traction toward $36.50, with a potential extension toward the psychological $37.00 barrier if buying pressure intensifies.