Can silver price avoid deeper losses as range holds between $58.24

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Silver drops 0.6% today to $59.59

Highlights

Silver gains support as a weaker US Dollar and falling Treasury yields increase investor interest in non-yield assets.
Market participants monitor how these supportive macro factors will influence silver's price stability in the near term.
Technicals indicate bearish bias with silver likely to consolidate between $58.24 and $60.94; a break below $58.24 could intensify selling.

Safe-haven demand rises as weaker dollar and yields shape flows

Silver's recent activity has been shaped by a weaker US Dollar and declining US Treasury yields, according to Fxstreet. These factors typically enhance the appeal of non-yielding assets such as Silver by lowering the opportunity cost of holding them. While this context may support demand, the broader market continues to assess the implications for price stability.

Sell bias persists as mixed technical signals define trading range

On the technical front, XAG/USD trades below the 20-period moving average ($60) but above the 50-period moving average ($59.19) on the H1 chart. The price also remains well under the 200-period moving average ($76.68) on the daily timeframe. Immediate resistance is situated at the Ichimoku Kijun level of $59.76. The Relative Strength Index (RSI) stands at 45.48, presenting a sell bias, with both the Stochastic RSI and Commodity Channel Index (CCI) indicating oversold conditions. The Moving Average Convergence Divergence (MACD) remains in strong buy mode, the Average Directional Index (ADX) is neutral, Bull/Bear Power favors sellers, and the Awesome Oscillator shows a neutral reading.

Downside risk dominates as price consolidates in volatility band

In the short-term, Silver is expected to consolidate within the $58.24 to $60.94 volatility band relative to current levels. The base scenario anticipates a continued range-bound movement. An upside breakout would require a sustained push above the $59.76 resistance, while a breakdown below $58.24 could accelerate declines. Current probabilities favor a downward move at 65%, versus 35% for an upward breakout.

Anton Kharitonov, expert at Traders Union, sees Silver under pressure as technicals highlight a fragile structure below key moving averages. He believes macro drivers such as a weak US Dollar and lower Treasury yields are only providing limited support to demand. Short-term momentum and sentiment remain defensive, with oscillators suggesting further downside risk. "Until $59.76 is reclaimed with conviction, I remain cautious and see higher odds for a downward move in Silver."

Earlier, analysts noted that persistent geopolitical tensions had driven safe haven demand for silver, shifting sentiment toward cautious optimism. The current analysis, however, highlights increased downside risks and reveals that traders should closely monitor the $58.24 support as a potential trigger for renewed selling pressure.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.