Silver Price Forecast: XAG/USD sellers retain control below key resistance at $53.00

• Silver resumes gains after retreating from a one-week high in the previous session.
• XAU/USD may face limited upside as hawkish Fed expectations support USD bulls.
• Conflicting technical signals call for caution when positioning for additional gains.

With a gain of around 1.80% on the day, Silver (XAG/USD) is trading near the mid-$52.00s during Wednesday’s Asian session. Buying on dips has partly reversed the previous day’s retreat from the $53.70-$53.75 area, a one-and-a-half-week high. Mixed signals nevertheless suggest that further upside may be limited.

US consumer inflation came in above expectations on Tuesday, reinforcing expectations of further policy tightening by the Federal Reserve (Fed). Traders also began pricing in the possibility of an outsized 50-basis-point (bps) rate increase in December following remarks by Fed Governor Christopher Waller. Such a hawkish policy outlook could keep the US Dollar (USD) supported, in turn weighing on dollar-denominated commodities, including XAG/USD.

On the 4-hour chart, the 100-period Simple Moving Average (SMA) at $53.05 continues to cap the commodity, which also remains below every visible Fibonacci retracement level of the $71.09-$48.61 decline. At 52.62, the Relative Strength Index (RSI) is only marginally above neutral, while the Moving Average Convergence Divergence (MACD) is still slightly negative. Together, these readings indicate that rebounds remain vulnerable as long as XAG/USD trades beneath the $53.00 barrier.

If a move above that barrier is sustained, the white metal could advance towards $53.92, the 23.6% Fibonacci retracement. Stronger resistance lies at $57.20, the 38.2% level, followed by the 50% retracement at $59.85. Conversely, the cycle low of $48.61 provides the next significant support. A breach would be likely to pave the way for a deeper correction, despite the neutral reading of short-term momentum at present.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

XAG/USD on the 4-hour chart