Silver price turns bearish as Fed hawkish pause halts rally
Silver drops 1.4% as Fed stance and strong dollar erase early-week gains
Silver’s bullish recovery early this week has been fully unwound, as prices extended a fresh leg lower during Thursday’s European session.
The metal had initially rallied after breaking out of a consolidation pattern, reaching a new multi-year high at $37.30. However, the upward momentum lost steam following the Federal Reserve’s hawkish pause on Wednesday. The Fed’s decision helped the U.S. dollar regain strength from a three-year low, and that strengthened dollar weighed on Silver, pushing it into a sharp intraday pullback.
Highlights
-Silver erases earlier gains as dollar strength and Fed stance pressure prices
-Technical signals flip bearish after death cross and RSI drop
-Weekly open at $36.30 now critical to near-term trend direction
Despite Thursday’s fragile global risk mood caused by lingering trade uncertainties and Middle East tensions, Silver's decline has deepened. This disconnection between traditional safe-haven behaviour and Silver’s price action reflects the overriding influence of monetary policy and the dollar’s rebound.
Silver price dynamics (June 2025). Source: TradingView
In Thursday’s European session, Silver dropped by 1.4% to touch $36.24, erasing the entire week’s prior gains. The decline came even as the dollar softened slightly during the same European session, suggesting that bearish technical pressure has overtaken dollar correlations for now.
Silver RSI stays bearish while EMA structure confirms selling pressure
From a technical standpoint, the 50 EMA on the 4-hour chart temporarily cushioned the fall at $36.24. But the current test of the weekly opening price at $36.30 puts Silver on the edge. A breakdown below this level would tilt the weekly trajectory into losses and mark a structural shift back to bearish control.
On the 1-hour timeframe, bearish momentum is further confirmed by the death cross formation, where the 20 EMA has now crossed below both the 50 and 100 EMA. This setup often reflects sustained seller control and has placed technical sentiment on edge. In addition, hourly RSI sits in bearish territory, suggesting limited appetite for aggressive dip buying in the near term.
If Silver finds support at the weekly open and attempts a rebound, it would need to overcome $36.63 to attract bullish momentum. This level is reinforced by overlapping resistance from the 20 and 100 EMA on the 1-hour chart. Failure to reclaim that zone would expose $36 as the next near-term downside objective, a psychological support that could decide whether this week ends in bearish extension or a late-session recovery.
Silver pushed higher toward the 14-year peak as geopolitical tensions kept haven demand strong. Rising dollar capped further upside while traders awaited the Fed’s next move.
