• Silver eases below $39.00 on Friday after hitting a 14-year high of $39.53 earlier in the week.
• The pullback is driven by an improved risk appetite and a modest rebound in the US dollar.
• The RSI on the daily chart eases to 65, signaling a healthy cooldown from overbought territory.

Silver (XAG/USD) corrects lower for a third day on Friday, easing to around $38.84 after hitting a fresh 14-year high of $39.53 earlier in the week. The pullback reflects improved global risk sentiment and a modest rebound in the US Dollar (USD), as upbeat US macro data and signs of easing trade tensions dampen safe-haven demand. Despite the decline, the metal remains up nearly 1.70% so far this week, underscoring the strength of the broader bullish trend.

Silver (XAG/USD) Daily Timeframe

On the daily timeframe, Silver continues to trade within a well-established ascending channel that has contained price action since April. The metal remains comfortably above both the 21-day Exponential Moving Average (EMA) and the 50-day EMA. Both EMAs are sloping upwards, indicating that the bulls are still in control.

The Relative Strength Index (RSI) on the daily chart has eased to 65 from overbought levels, reflecting a healthy cooldown rather than a trend reversal.

Immediate support lies at $38.70, the July 22 low, followed by the psychological $38.00 mark. A break below these levels could accelerate the downside toward the 21-day EMA at $37.81. Further weakness may bring stronger support near $36.41, where the 50-day EMA aligns with the lower boundary of the ascending channel. On the upside, $39.00 now serves as the first hurdle, followed by $39.53 high of July 23.

A decisive move above this zone could reignite bullish momentum and pave the way for a test of the psychological $40.00 handle, with potential extension toward $42.00 and beyond.

Silver (XAG/USD) 1-Hour Chart

The hourly chart shows bearish pressure building, despite an earlier bullish setup. Silver recently carved out a classic cup-and-handle formation, with the handle forming as a falling wedge pattern — usually a bullish sign. However, the breakout attempt above the $39.00 mark lacked follow-through, and the price has since fallen back below the 21-period EMA at $38.96 and the 50-period EMA at $39.00. Notably, the 21-period EMA has now crossed below the 50-period EMA, now serving as immediate resistance.

On the downside, if the price breaks below the lower boundary of the handle formation, it could trigger further weakness toward $38.50 in the near term. The Relative Strength Index (RSI) on the hourly chart has also retreated to near 41, reflecting fading intraday momentum and a possible consolidation phase. Meanwhile, the Average Directional Index (ADX) remains elevated at around 37, indicating a still-active trend, although the loss of upward follow-through signals is growing caution among bulls.