Silver prices slipped 2% on Wednesday, pressured by rising U.S. Treasury yields as investors grow increasingly confident that the Federal Reserve will hold off on cutting interest rates. As Thursday’s Asian session gets underway, silver (XAG/USD) is trading flat at $32.20.
Technical Outlook: Consolidation Ahead, Bearish Momentum Dominates
Silver appears poised to consolidate in the near term, trading between the $32.00 and $33.00 levels. On the technical front, upside movement is constrained by the 50-day Simple Moving Average (SMA) at $32.73, while support is seen at the 100-day SMA near $31.91.
Momentum indicators point to a bearish bias, with the Relative Strength Index (RSI) suggesting sellers currently have control. For bears to gain further traction, a sustained drop below the $32.00 support level and the 100-day SMA is essential. A successful breakdown could drive the metal toward the 200-day SMA at $31.30, followed by key support at $31.00 and the April 7 cycle low at $28.33.
On the other hand, if silver climbs above the 50-day SMA, it could retest the $33.00 threshold. A breakout above that level would open the door to the April 24 swing high at $33.68, with $34.00 marking the next potential resistance.
While the broader economic sentiment and Fed policy expectations continue to shape silver’s trajectory, the technical setup currently favors a cautious, range-bound approach with a slight tilt toward the downside.
