Can silver price break resistance as intraday buyers support higher prices?

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Silver gains 1.35% to $67.05 today

Highlights

Silver weakened as the Federal Reserve Chair's hawkish comments increased expectations of tighter U.S. monetary policy.
Investor reassessment of non-yielding assets continues to influence moves in silver amid heightened central bank sensitivity.
Technical signals point to seller pressure with a 64% chance of a move below near-term support at $65.85 and price expected to stay between $65.85 and $68.25 in the next 2 to 3 days.

Hawkish Fed commentary curbs silver demand amid policy reassessment

Silver faced renewed pressure after Federal Reserve Chair Kevin Warsh adopted a hawkish stance at the Jackson Hole symposium, reinforcing the prospect of tighter U.S. monetary policy. This shift in tone, reported by Tradingpedia, dampened demand for non-yielding assets such as silver as investors reassessed relative attractiveness amid a firmer policy outlook. The event has contributed to an environment where sensitivity to central bank signals continues to drive moves in the metal.

Resistance at key Ichimoku level as technical signals diverge

On the technical front, XAG trades above the MA-20, while remaining below the MA-50 on the hourly chart and the MA-200 on the daily chart. The Ichimoku Kijun at $68.4 now serves as immediate resistance, and price action is further bounded by near-term support at $65.85. Momentum readings are mixed: MACD and ADX both signal prevailing weakness, whereas RSI is neutral at 48.91 with a sell bias. However, Stoch RSI and CCI are in overbought territory, pointing to stretched upside conditions. Bull/Bear Power indicates intraday buyer strength, while the Awesome Oscillator remains neutral, collectively highlighting diverging signals across timeframes.

Downside risk prevails as range-bound trading dominates outlook

In the next two to three sessions, silver is expected to fluctuate within a typical volatility band of $65.85 to $68.25. The probability of a further upside move is 36%, while downside risk dominates at 64%. A continuation of range-bound trading is the baseline scenario, but a decisive breakout above $68.4 would be required to confirm a bullish reversal, whereas a drop below $65.85 would favor a deeper retracement.

Viktoras Karapetjanc, analyst at Traders Union, sees silver supported by a constructive technical setup even as hawkish signals from the Federal Reserve weigh on sentiment. He believes current fundamentals and macro headwinds keep the bias modest, with mixed momentum requiring a focus on risk control. The analyst notes intraday buyer strength and potential for upside if resistance is cleared, but downside risk remains dominant in the near term. "If silver can decisively break above $68.4, upside momentum could quickly resume, yet I stay constructive as long as price holds above $65.85."

Previously it was reported that silver remained under pressure amid hawkish central bank commentary and technical resistance, with analysts highlighting continued vulnerability to policy shifts. The current analysis deepens this view by showing that despite some intraday strength, silver’s outlook is skewed to the downside and traders should closely monitor the $65.85 level as a trigger for further weakness.

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.