Silver (XAG/USD) posted moderate losses on Wednesday, pressured by improving market sentiment and a stronger U.S. Dollar, both of which undercut demand for traditional safe-haven assets.
The Greenback extended its recent gains across major currencies, buoyed by signs of easing trade tensions and robust U.S. consumer sentiment. Investor confidence was lifted after U.S. President Donald Trump announced a delay in imposing tariffs on European goods, while Tuesday’s upbeat Consumer Confidence Index further supported the dollar’s rally.
Although weak U.S. Durable Goods Orders might have raised some concerns, the prevailing risk-on mood effectively sidelined worries over the U.S. fiscal outlook—at least temporarily. Market participants now turn their attention to the release of the Federal Reserve’s May meeting minutes, expected later in the day, for insights into the central bank’s future monetary policy path.
Technical Outlook: Bearish Correction in Play
Silver is currently in a corrective downtrend after failing to break above the upper boundary of its two-month trading range, capped at $33.70. Last week’s lower high reinforced the short-term bearish bias, with immediate support seen around the $32.80 mark.
The XAG/USD pair continues to struggle for traction above $33.35, remaining confined within Tuesday’s trading range. Resistance at $33.50, marked by the highs of May 23, 26, and 27, is expected to cap bullish attempts, just ahead of the key horizontal barrier at $33.70.
On the downside, a decisive break below the $32.80 support level would likely expose the next key support at $32.15, opening the door for further losses in the short term.
