Why is silver price flat today? U.S. Treasury buyback expansion and $68.61 support levels to watch

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Silver gains 0.17% to $68.77 today

Highlights

U.S. Treasury buybacks have weakened the dollar and reduced inflation worries, supporting investor appetite for Silver as an alternative asset.
Persistent industrial demand from solar, electric vehicle, and AI sectors continues to absorb Silver supply, supporting long-term fundamentals.
Technical indicators show mixed momentum for XAG/USD, with price consolidation expected in the $67.8 to $69.74 range over the next 2 to 3 days.

Buybacks weaken dollar, policy shifts and demand bolster silver outlook

The recent expansion of U.S. Treasury buybacks, as reported by Fxstreet, has led to a weaker U.S. dollar and eased inflation concerns, making precious metals like Silver more attractive for investors seeking alternative stores of value. Sustained industrial demand from sectors including solar energy, electric vehicles, and AI data centers provides fundamental long-term support as these industries continue to absorb physical supply, according to Fxstreet. Additionally, discussions within the Indian government over potential cuts to the 15 percent import duty on Silver, reported by Moneycontrol, highlight an evolving regulatory environment that could impact global demand patterns. These factors combine to maintain a broadly constructive environment for Silver, given the current balance of supply, demand, and external financial conditions.

Consolidation forms as momentum signals diverge at support

On the technical front, XAG trades just below the MA-20 but remains above the MA-50 on the hourly chart, with both levels considerably under the MA-200, setting up a band of consolidation. Immediate support is highlighted by the Ichimoku Kijun at $68.61. Momentum signals are divergent: MACD shows a strong buy reading, while ADX is neutral. RSI near 50 implies a mild buy bias, but both Stoch RSI and CCI remain neutral, and Bull/Bear Power presently favors buyers.

Upside favored as silver consolidates within volatile range

In the near term, XAG is expected to consolidate between $67.8 and $69.74 as typical volatility persists. The probability of a short-term move to the upside is slightly stronger at 53%, suggesting a modestly favorable scenario for bulls. If prices overcome resistance, further upward extension is plausible, while a break below the defined support may open room for downside volatility.

Viktoras Karapetjanc, expert at Traders Union, sees Silver trading in a healthy macro and fundamental context. He believes that robust industrial demand, supportive U.S. policy actions, and regulatory shifts can keep sentiment strong despite recent technical consolidation. The analyst notes slightly increased odds for further upside in the near term, but expects the market to remain mainly range-bound between $67.8 and $69.74. "With institutional actions and end-user demand providing a solid floor, I view Silver’s current setup as constructive and expect momentum to gradually strengthen from here."

Earlier, analysts noted that silver was consolidating as traders awaited key US inflation data that could determine the next directional move. The current analysis adds that a more favorable backdrop from dollar weakness and sustained industrial demand strengthens silver’s technical setup, making the upper boundary of the current consolidation range a critical level to watch for potential upside breakout.

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.