Silver price dips amid rising selling pressure

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Silver slides 5.19% today to $58.38

Highlights

Silver prices hit new six- to seven-month lows as the Federal Reserve's hawkish stance strengthens the dollar and dampens demand.
Ongoing industrial demand and persistent structural supply deficit failed to offset broad selling amid easing geopolitical tensions.
Technical pressure dominates with silver trading below key averages; high probability prices remain in the $58.15–$61.35 range, with downside risk toward $54.15.

Fresh multi-month lows as dollar strength offsets supply deficit

Recent news reported a steep decline in Silver prices to fresh six- to seven-month lows after the Federal Reserve adopted a more hawkish policy stance and maintained higher interest rates. This action strengthened the US dollar and reduced demand for silver. Market commentary also noted easing geopolitical tensions alongside ongoing industrial demand and an unresolved structural supply deficit, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Silver’s sudden 5.19% fall as technically and fundamentally driven. The analyst notes aggressive selling pressure across all timeframes, with Silver unable to reclaim any major moving averages. He points out continued negative readings in momentum indicators, underscoring a decisive bearish sentiment. Kharitonov also highlights that oversold signals and volatility do little to inspire confidence amid the dollar’s strength post-Fed decision. "Until Silver climbs back above $61.35 and clears the prevailing downtrend, sellers remain firmly in control and risk persists for further declines."

Viktoras Karapetjanc, expert at Traders Union, interprets Silver’s correction as a potential setup for renewed opportunity. He acknowledges the strong macro headwinds and dovish investor sentiment but points to the persistent industrial demand and chronic supply deficit as market supports. Karapetjanc believes the structural fundamentals remain bullish, especially if the price holds above $54.15. "With the market oversold and medium-term demand drivers intact, I expect further growth opportunities once sentiment turns and supply issues resurface."

Oversold signals deepen with multi-timeframe sell pressure prevailing

XAG/USD continues to trade well below its 20-day ($68.30), 50-day ($73.61), and 200-day ($76.51) moving averages, confirming persistent seller pressure across short-, medium-, and long-term trends. The near-term floor is $58.15 and the ceiling sits at $61.35, with the Ichimoku Kijun ($70.02) far overhead, reinforcing the prevailing bearish alignment. Momentum signals remain decisively negative: MACD and ADX both indicate a sell bias, while the RSI at 31.43, Stochastic RSI at 18.48, and CCI at -147.15 all highlight oversold conditions. Bull/Bear Power (BBP) reads -3.54, confirming sellers dominate the intraday momentum, further supported by its oversold status. The Awesome Oscillator bolsters the overall downward trend. Intraday price action is clustered near session lows and volatility amplitude stands at 7.26%, with losses clearly aligning with the bearish technical signals.

Earlier, analysts noted that silver was under sustained bearish pressure as hawkish Federal Reserve policy weighed on demand and technicals reinforced negative momentum. The latest market developments further validate this outlook, with traders closely watching the $54.15 level as a decisive downside trigger for potential additional losses in the near term.

Source of Data: XAG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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