Silver price forecast — The silver market (XAG/USD) fell on Monday, dropping toward the $37.60 support level after failing to break above $38.50 resistance. The move came as the US Dollar strengthened and risk sentiment improved, reducing demand for precious metals.
Market Drivers for XAG/USD
Hopes for a US-China trade deal and progress in Ukraine peace talks weighed on silver prices. Traders expect that Washington and Beijing will extend their trade truce, avoiding new tariffs that could slow global economic growth.
At the same time, talks between US and Russian officials are raising optimism ahead of the Trump-Putin summit in Alaska. Positive geopolitical developments tend to reduce safe-haven demand, which is pressuring XAG/USD.
Technical Analysis: Silver Price Struggles Below $38.00
From a chart perspective, silver reversed sharply from $38.50 resistance, breaking below an ascending channel that began on August 1. This signals the end of the recent bullish trend.
The $37.60 zone is key support. It aligns with the 38.2% Fibonacci retracement of the latest rally and the August 6 low. A decisive break under this level could lead to further losses in silver prices.
Next Support Levels for XAG/USD
•$37.30 — August 5 low and 50% Fibonacci retracement.
•$36.21 — last Friday’s low.
•$36.05 — 61.8% Fibonacci retracement, often a correction target.
Upside Targets for Silver Price
If buyers reclaim $38.00, the next resistance zone is $38.40–$38.50, which capped gains earlier this month.
Outlook for Silver Price
The short-term bias for silver remains bearish unless $37.60 holds. A close below this level could trigger a move toward $37.30 or lower. For a bullish reversal, silver must break and hold above $38.00.
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