Silver Price Outlook: XAG/USD hovers near $73.50; remains at risk beneath the 200-EMA
Silver Price Outlook: XAG/USD Faces Continued Pressure
Silver (XAG/USD) is experiencing further declines during Thursday's Asian trading session, following a slight retreat from its weekly peak. The precious metal is currently trading just below the mid-$73 range, marking a 2% drop for the day and showing signs of potential additional weakness.
Recent price action saw XAG/USD unable to break above the key 200-period Exponential Moving Average (EMA) on the 4-hour chart, and it has since slipped beneath the 38.2% Fibonacci retracement level from the March downturn. Technical indicators also suggest bearish momentum: the Relative Strength Index (RSI) is near a neutral 48.18, while the Moving Average Convergence Divergence (MACD) has edged below zero, with its histogram showing signs of decreasing strength. These factors indicate that the likelihood of an immediate rebound is diminishing.
Looking at resistance levels, the first barrier is the 38.2% Fibonacci retracement at $74.53. The 200-period EMA at $76.76 provides additional resistance, with the 50.0% retracement at $78.68 acting as a further ceiling. On the support side, the 23.6% Fibonacci retracement at $69.41 is expected to offer initial support, followed by a more significant base near the cycle low of $61.12.
This technical analysis was prepared with assistance from an AI tool.
XAG/USD 4-Hour Technical Chart Overview
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Micron now earns more than Apple! Apple urgently needs chips, Micron holds pricing power.
Micron Technology reported a net profit of $37.7 billion in the fourth fiscal quarter, surpassing Apple's $29.8 billion for the same period, thus becoming the more profitable company for the quarter. The memory shortage has given Micron strong pricing power, with its CEO stating that they “cannot meet customer demand.” The revenue guidance for next quarter is as high as $61.5 billion. Meanwhile, Apple's gross margin continues to be pressured by persistent memory costs, having dropped from 49.3% to a guidance range of 46.5%.
The "Eye of the Storm" in the Global Economy: Debt Crisis in Developed Countries
The IMF warns that developed economies are becoming the "eye of the storm" for global debt risks. Countries such as the United States and France accumulated high levels of debt during periods of low interest rates, but now rising interest rates are pushing up repayment costs, and fiscal consolidation faces political resistance. BofA Securities points out that the United States is facing declining tax revenues, France has structural income decline issues, and the UK and Japan are also under pressure. The deteriorating debt sustainability of developed countries may impact global financial markets through shocks in interest rates and capital flows.
The US market narrative undergoes a "dramatic reversal": shifting from "AI-driven deflation and controllable US debt" to "AI squeezing the bond market, and Bassen unable to control long-term interest rates"
Deutsche Bank points out that the market narrative regarding the U.S. economy has shifted from "AI drives down inflation" to "AI-related bond issuance pushes up U.S. Treasury yields," but pessimism may be overdone. The bank believes that the real risks underestimated by the market are security incidents in the AI ecosystem, failed IPOs, or underwhelming revenues, which could undermine the dollar and support the bond market. In addition, France's fiscal difficulties are putting new pressure on the euro.
Crypto prices
More
