Why is silver price down today? Support levels to watch as sellers persist

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Silver drops 1.39% today to $66.09

Highlights

The US Treasury Department doubled buyback operations for long-dated government securities, lowering US yields and weakening the Dollar.
A softer Dollar environment improved demand for Silver, with prices approaching a two-month high despite broader selling pressure.
Silver trades below key moving averages in a bearish setup, with projected range of $65.09 to $67.09 and 67% probability of upward movement.

Silver’s appeal rises as Treasury move weakens dollar

The US Treasury Department's decision to double buyback operations for long-dated government securities led to a drop in US yields and the US Dollar, according to Fxstreet. This shift in monetary flows improved the relative appeal of Silver by creating a softer Dollar environment, which typically supports investor demand for commodities as alternative stores of value. Tradingpedia reported that this announcement helped Silver approach a recent two-month high, though price action has remained under broader selling pressure.

Bullish momentum persists despite price near technical support

Technically, XAG is trading below its MA-20 at $66.69 and MA-200 at $74.64, but remains above the MA-50 at $64.98. The Ichimoku Kijun provides immediate support at $65.24. On the momentum side, MACD and ADX both signal buying activity, with Bull/Bear Power highlighting buyer dominance in intraday action. RSI stands at 54.27, indicating a mildly bullish bias, and Stoch RSI is oversold, hinting at a possible recovery from recent weakness. However, CCI and the Awesome Oscillator are neutral, and the price remains near the day’s lows with moderate volatility, indicating some persistence of seller activity alongside bullish signals from momentum indicators.

Price consolidation likely as upside breakout risk builds

In the short term, XAG is expected to trade within a $65.09 to $67.09 range. The baseline scenario is for consolidation between these boundaries, with a 67% probability of an upward move. A break above $67.09 could open the door for further gains, while a drop below $65.09 would likely trigger additional downside momentum.

Viktoras Karapetjanc, analyst at Traders Union, sees positive macro forces supporting Silver. He notes that the US Treasury’s decision to expand buybacks directly benefited Silver by making the Dollar environment more favorable. Technical signals are mixed, but momentum and sentiment remain constructive. The expert believes that, with consolidation likely, upward breakout chances are growing. "If buying flows persist and the Dollar stays soft, Silver has a real shot at challenging resistance above $67.09 in the near term."

Earlier, analysts noted that silver was benefiting from shifting Treasury policies, but continued to face resistance from broader selling pressure and longer-term technical hurdles. The current analysis adds weight to that view, indicating that while momentum signals hint at a potential recovery, traders should be alert to any decisive moves beyond the $67.09 resistance or below the $65.09 support for the next significant direction.

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.