Silver Price Forecast: Is XAGUSD Set for a Bigger Drop Before the Next Rally?
By:
Key Points:
- Silver remains under pressure as sticky inflation, higher Treasury yields, and a stronger U.S. dollar reduce expectations for near-term Fed rate cuts.
- The long-term silver structure remains bullish, but a deeper correction may develop before the next major rally.
- A strong recovery would signal renewed bullish momentum, while a decisive breakdown would weaken the outlook and expose deeper downside risk.
Silver (XAG) price has dropped sharply after last week’s strong U.S. inflation, rising U.S. Treasury yields and a stronger dollar reduced expectations for near-term Fed rate cuts. Silver’s move from the $89 price zone to $75 indicates that it is susceptible to rate shocks due to its high exposure to industrial demand. This article discusses the macro drivers, technical structures and major risk levels that could influence the next step in silver.