Silver prices retreated, slipping toward $30.00, as a technical breakdown in the recent ascending channel signaled fading bullish momentum. The move triggered renewed selling pressure, with traders reassessing the metal’s short-term outlook amid broader market uncertainty.
The decline follows a period of strong gains fueled by expectations of Federal Reserve policy shifts and sustained demand for precious metals. However, with Treasury yields firming and the U.S. dollar holding steady, silver struggled to maintain its upward trajectory, leading to a technical correction.
Despite the pullback, some analysts see underlying support around the $29.50–$30.00 range, with demand factors such as industrial usage and inflation hedging providing a potential floor. However, unless fresh catalysts emerge, XAG/USD could remain vulnerable to further downside pressure, especially if risk sentiment shifts.
Traders will be watching upcoming U.S. economic data, particularly inflation figures and Fed commentary, for clues on the central bank’s next steps. Any signal of a higher-for-longer rate stance could keep silver under pressure, while dovish signals might provide relief for precious metals bulls.
For now, silver’s outlook remains cautious, with the recent technical breakdown capping further gains. Unless buyers step in to defend key support levels, the metal could see additional volatility in the sessions ahead.
