Silver Price Analysis: Will XAG/USD Rebound or Extend Losses in 2025?

Summary:
• Silver prices dip to $28.98 amid dollar strength and rising rates. Explore XAG/USD technical analysis, key levels, and predictions for 2025.

The price of silver (XAG/USD) has experienced significant bearish pressure in recent months, with its value retreating from highs of $34.84 earlier this year to trade near $28.98 today. This decline highlights the metal’s sensitivity to macroeconomic shifts, including the Federal Reserve’s policies and shifting demand dynamics in industrial and investment sectors.

Silver Key Technical Levels

• Immediate Support: $28.98 – the current level being tested, with $28.81 serving as critical backup support.
• Major Support: $26.43 – a historical low that could attract buyers in the event of further selling pressure.
• Upside Resistance: $30.18 – a recovery above this level is essential to rekindle bullish momentum.
• Major Resistance: $32.98 – a key zone to watch for any sustained recovery in silver prices.

Chart Observations

1. Bearish Momentum: The price action reflects consistent lower highs and lower lows, a clear sign of bearish dominance.
2. Critical Range: Silver is trading within a narrow range between $28.98 and $30.18, signalling a potential breakout in either direction.
3. Volume Divergence: Declining volumes suggest reduced trader interest, potentially setting the stage for a significant move.

What’s Driving Silver Price Volatility?

• Dollar Resilience: The robustness of the U.S. dollar persists in impacting precious metals, such as silver.
• Industrial Demand: A slowdown in manufacturing sectors worldwide has reduced the demand for silver, which is commonly utilized for industrial purposes.
• Interest Rates: Increasing interest rates reduce the attractiveness of non-yielding assets such as silver, placing additional downward pressure on its price.

Silver Outlook

Silver’s price trajectory will largely depend on its ability to hold $28.98. A breakdown below this level could lead to a slide toward $28.81 or even $26.43. However, a recovery above $30.18 may spark bullish sentiment and drive a rally toward $32.98. Traders and investors should closely monitor macroeconomic developments and the Federal Reserve’s policy decisions as key drivers of silver’s next move.