Silver prices slipped below the crucial $31.50 mark on Friday as the U.S. dollar strengthened, following former President Donald Trump’s election win. The XAG/USD is now trading around $31.29, down 2.29% from recent highs, pressured by ongoing dollar strength and lingering bearish momentum that continues to weigh on the metal’s near-term outlook.
Technical Analysis: Can Silver Hold Support?
The recent dip pushed silver below its 50-day Simple Moving Average (SMA) at $31.37, a critical level for sustaining bullish momentum. With the next support at $30.84, analysts suggest that any further decline could deepen silver’s pullback. A break below $30.84 could open the door to additional selling pressure, targeting the 100-day SMA at $30.27, followed by long-term support near $29.17, a level last seen in early September.
For a reversal, silver must close above $31.50 to reclaim upward momentum. A sustained close above this level would allow XAG/USD to target the July 11 high of $31.75, with potential upside toward $32.00 and even May’s peak at $32.51 if buyers return with strength.
Bearish Indicators in Play
Momentum remains skewed toward the downside, with the Relative Strength Index (RSI) for XAG/USD slipping into bearish territory. This indicator signals that sellers currently hold the upper hand in the market, reinforcing the near-term bearish outlook unless silver can reclaim and hold key levels.
Also read : Silver Price Holds Steady at $31.18, Up 31.02% In 2024 Amid Stable Market Conditions
Dollar Strength Weighs on Silver
Silver’s decline coincides with a strong U.S. dollar, which has been buoyed by recent election results and expectations of inflation-prone policies that may keep the Federal Reserve cautious. While the Fed’s latest rate cut suggests economic resilience, its policy stance remains “restrictive,” limiting any immediate upside for silver as rising inflation expectations could reinforce dollar strength.
