Silver (XAG/USD) is pulling back after touching recent highs above $39.00. Now trading below $38.50 as the US Dollar extends its rally. The decline comes as the US Dollar Index (DXY) posts gains for the fourth consecutive session.
Supported by a weak Euro amid political turmoil in France.
Although markets remain cautious about the Federal Reserve’s independence and rising expectations of rate cuts, the Greenback’s resilience is keeping precious metals under pressure.
Technical Analysis: $38.35 Support Key for Silver Bears
From a technical perspective, XAG/USD shows a bearish correction from last week’s one-month high at $39.07. Price action is testing support at $38.35 (August 25–26 lows).
- A break below $38.35 could drag Silver toward the August 22 low at $37.70, with the next support at $37.25, the lower boundary of the ascending channel.
- On the upside, immediate resistance lies near $38.75 and $38.85, followed by the August 22 high at $39.10 and July 22 high at $39.55.
Outlook for Traders
Silver traders should closely watch the $38.35 support zone. A downside break may accelerate bearish momentum, while a rebound above $38.75 could bring back buyers targeting $39.10 and beyond.
For now, Dollar strength remains the dominant driver, leaving Silver vulnerable to further declines.
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