What triggered Silver price's latest price pullback

Traders Union
All News
Financial News
Silver slides 5.36% today to $61.85

Highlights

Stronger US economic data and rising Treasury yields have lifted the US dollar, intensifying selling pressure on silver as a non-yielding asset.
A structural silver supply deficit persists but is forecast to narrow by 2027, while mine production in 2026 remains flat due to by-product constraints.
Silver trades with strong bearish momentum below key technical levels; the expected five-day range is $58.59–$66.74, with high odds of consolidation or rebound.

US dollar strength and ETF outflows pressure silver despite supply concerns

Recent developments indicate that silver market declines have been associated with stronger US economic data, rising Treasury yields, and shifting Federal Reserve expectations, which have supported the US dollar and weighed on silver as a non-yielding asset. Market commentary also noted that a structural deficit in silver supply persists but is projected to shrink in coming years as global deficits decrease by 2027. Mine production for 2026 was estimated to remain flat and constrained by technological limits since most silver is produced as a by-product of other metals. Changes in industrial demand from the photovoltaic sector and further outflows from silver-related ETFs were mentioned as contributing factors.

Anton Kharitonov, expert at Traders Union, underscores that silver is firmly entrenched below all major moving averages. He sees the current technical setup as deeply bearish, with momentum and breadth indicators confirming overwhelming seller control. Recent news on stronger US data and shrinking deficits fails to shift the critical outlook, as persistent ETF outflows and lackluster industrial demand continue to weigh on sentiment. Kharitonov highlights the strong barrier at $76.88 and absence of nearby Ichimoku support below, exposing the market to further downside risk. "Until silver reclaims lost ground and sentiment improves, I see little incentive for bullish positioning in the near term."

Viktoras Karapetjanc, expert at Traders Union, believes structural supply deficits and ongoing industrial demand offer a positive backdrop for silver. He notes that despite recent headwinds from US macro data, the fundamental outlook remains constructive due to constrained mine output and cyclical recovery potential. The analyst is confident that oversold technical conditions and strong weekly signals point to a rebound scenario. "With forward-looking drivers and a shrinking deficit, I expect silver’s bullish structure to reassert itself soon."

Persistent sell-off deepens as resistance holds and key signals turn oversold

The nearest dynamic resistance is marked by the Ichimoku Kijun at $76.88, which poses a substantial barrier for any bullish attempt, while no key support from Ichimoku is presently visible below the market. Momentum indicators show clear downside pressure, with the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both confirming a prevailing bearish trend. The Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) all signal oversold conditions, suggesting a potential for short-term exhaustion of sellers. Bull/Bear Power (BBP) is deep in negative territory at -2.66, showing that sellers firmly dominate intraday momentum, and this indicator is also in oversold territory. The Awesome Oscillator aligns with the prevailing downtrend. After opening with a pronounced downside gap of about $1.19, the pair is now near the low of today’s range; intraday volatility stands at 5.22%. The daily tone is decisively pressured after the open as sellers continue to dominate, and these sharp declines are in line with bearish momentum signals.

Earlier, analysts noted that silver was exhibiting persistent bearish momentum amid ongoing macroeconomic headwinds and heightened uncertainty. The current setup reinforces this outlook with fresh downside signals across all major technical and momentum indicators, making a potential break below $58.59 the key risk for traders in the days ahead.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.