Silver declines as strong U.S. jobs and inflation data weigh on sentiment

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Silver slides 2.87% to $63.47 today

Highlights

Silver faces continued sell-off pressure as institutional and retail investors accelerate position reductions amid hawkish Fed rate hike expectations.
Stronger U.S. employment and inflation data have diminished the appeal of non-yielding assets, further weakening Silver demand and market sentiment.
Technical signals indicate dominant bearish momentum, with XAG/USD likely consolidating between $61.10 and $65.84 while downside risk remains high.

Selling accelerates as liquidation flows meet Fed rate hike fears

A sustained sell-off in Silver (XAG/USD) has been reported by multiple sources, reflecting realized selling activity across both institutional and retail participants and pointing to additional downward price pressure from active liquidation flows. Benzinga noted that renewed expectations for further Federal Reserve rate hikes, following strong U.S. jobs and inflation data, have contributed to reduced demand for non-yielding assets such as Silver, accelerating position reductions in the market. This confluence of immediate selling activity and macroeconomic rate policy factors has driven sentiment lower, amplifying the current drawdown.

Bearish momentum persists as support weakens and oscillators diverge

On the technical front, XAG/USD is trading below the MA-20 and MA-50 on the H1 timeframe and remains further under the MA-200 on the daily chart. The Kijun level from the Ichimoku indicator stands at $66.08, acting as immediate resistance. Momentum indicators reflect weak conditions, with MACD reading strong sell, ADX confirming a bearish tone, RSI at 39.77 in sell territory, and CCI also signaling sell. BBP shows an oversold status, while the Stoch RSI reads overbought, underscoring divergence among oscillators and reflecting short-term uncertainty. The Awesome Oscillator remains neutral, providing no additional support to the prevailing move.

Bearish range holds as breakout risk remains skewed to downside

Over the next 2–3 trading days, XAG/USD is forecast to move within a typical volatility band between $61.10 and $65.84. The likelihood of an upward breakout is considered very low, while downside expansion probability remains high. The baseline scenario anticipates consolidation inside this range, with a bullish reversal requiring a decisive break above immediate resistance at $66.08. If price declines below $61.10, the bearish scenario would accelerate as additional liquidations are triggered.

Viktoras Karapetjanc, expert at Traders Union, sees the current downside in Silver as primarily driven by macro policy expectations and active liquidation flows. He notes that both institutional and retail selling reflects a shift in sentiment amid the prospect of further Fed rate hikes. The analyst highlights that technical signals confirm the prevailing weakness, but he remains constructive if key support levels hold. "A recovery is possible if Silver can defend above $61.10 and market sentiment stabilizes around upcoming macro data events."

Earlier, analysts noted that silver continued to exhibit persistent bearish momentum amid heightened geopolitical and macroeconomic uncertainty. The current environment not only reinforces this outlook but also highlights the importance of monitoring further downside acceleration if support at $61.10 fails to hold in the coming sessions.

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.