Silver plunges as US dollar strength and Treasury yields pressure metals

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Silver slides 8.89% today to $69.16

Highlights

Silver remains under pressure below $80.00 as traders await the Federal Reserve's policy announcement amid strong US dollar and Treasury yields.
Safe-haven demand for silver has increased due to escalating Middle East geopolitical tensions, partially offsetting the impact of bearish macro drivers.
Silver trades well below short- and medium-term averages with strong sell signals from momentum indicators, targeting a $66.00–$74.00 range and elevated downside risk in the near term.

Downward pressure builds as Fed meeting and dollar strength weigh

During the latest European trading session, silver remained confined below $80.00 as market participants awaited the Federal Reserve’s monetary policy announcement. Ongoing corrective momentum followed the recent pullback from all-time highs earlier in the year, with the metal consolidating after a period of heightened volatility. Rising US dollar strength and higher US Treasury yields exerted additional downward pressure as markets responded to a strong U.S. Producer Price Index report and shifting interest rate expectations. Escalating geopolitical tensions in the Middle East were accompanied by increased demand for safe-haven assets, including silver.

Bearish momentum prevails as indicators reinforce downside risks

Technically, XAG faces immediate resistance at the Ichimoku Kijun level of $86.35, with the near-term trend remaining under pronounced bearish control as prices sit near the day’s low within a volatile $70.12–$78.03 range. Momentum indicators such as MACD and ADX both display a strong sell bias, while RSI, Stoch RSI, and CCI all confirm oversold conditions. BBP is deeply negative, highlighting intraday dominance by sellers, and the Awesome Oscillator direction is aligned with the overall bearish trend.

Limited rebound prospects as volatility and oversold signals persist

For the next five trading days, XAG is expected to trade within a volatility band of $66.00 to $74.00 relative to current levels. The probability of a price increase is currently estimated as very low (less than 20%), so further declines are more likely. The baseline scenario is for sideways movement as oversold technicals may prompt some short-covering. A decisive move above $74.00 could signal a bullish reversal, while a breakdown below $66.00 would threaten to breach longer-term support.

Viktoras Karapetjanc, expert at Traders Union, sees recent bearish action in Silver as the result of macro headwinds and strong US data. He notes that despite steep short-term losses, strategic demand for safe-haven assets could provide support near longer-term averages. Karapetjanc believes oversold conditions and mounting geopolitical risks keep the door open for a stabilization or rebound if selling pressure abates. "While further downside is possible, I am constructive on XAG as long as it holds above $66.00 — the next five days may see consolidation or the start of a bullish reversal if market sentiment shifts."

Earlier, analysts noted that silver was experiencing persistent short- and medium-term selling pressure due to bearish technicals and heightened geopolitical uncertainty. The latest market developments corroborate this view, highlighting that traders should closely monitor the $66.00 support level as a break below it could trigger renewed downside momentum.

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.