Silver (XAG/USD) trades on the front foot on Monday as buyers defend the $55.00 mark after the metal briefly slipped below it on Friday, touching its lowest level since December 2025. At the time of writing, XAG/USD trades around $56.85, up nearly 1.50% on the day.
The metal, however, lacks strong upside momentum as Middle East tensions support the US Dollar, while energy-driven inflation risks keep hawkish Federal Reserve (Fed) expectations alive. Meanwhile, the technical outlook remains bearish, even as momentum indicators point to a slowdown in selling pressure.
Silver positioning pares back as demand signals soften
According to TD Securities, speculative appetite for the metal continues to fade, with the bank noting that “money managers have also reduced their long silver exposure, which will apply downward pressure on prices due to weakening industrial and investment demand.” This retrenchment in positioning underscores a more cautious stance toward silver as both industrial usage and investor interest show signs of cooling.
Technical analysis: Daily chart
XAG/USD remains well beneath the 200-day and 100-day Simple Moving Averages (SMAs). The Relative Strength Index (RSI) around 38 stays below the neutral 50 line, suggesting only modest downside momentum, with the slightly positive Moving Average Convergence Divergence (MACD) hinting at tentative attempts to stabilize after the latest slide.
On the topside, initial resistance emerges at the horizontal barrier near $60, followed by a stronger cap around $65. A sustained break above these levels would ease selling pressure and expose the 200-day SMA at $70.58 and the 100-day SMA at $72.24 as the next hurdles.
On the downside, immediate support is seen at $55, with a loss of this floor opening the way toward the $50 zone, where buyers would likely attempt to stem deeper losses.
Technical Analysis: 4-hour chart
XAG/USD holds a bearish near-term bias as it remains below the 100-period Simple Moving Average (SMA) at $58.94 and the 200-period SMA at $62.43.
The metal has bounced off recent lows but is still capped by a nearby horizontal barrier at $58, while the Relative Strength Index at 47 stays near neutral and the Moving Average Convergence Divergence (MACD) turns mildly positive, hinting that the latest recovery is corrective rather than a clear trend reversal.
On the topside, immediate resistance stands at $58.00, followed by the 100-period SMA near $58.94 and then $60.00, with the 200-period SMA at $62.43 and the prior horizontal cap at $65.00 reinforcing a broader supply zone overhead.
On the downside, initial support is seen at the horizontal level of $55, and a break beneath this floor would likely expose the metal to deeper losses within the prevailing bearish structure.
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