XAG/USD Price Analysis: Silver Briefly Retakes $26

The precious metal has experienced torrid times in recent trading sessions. However, it performed slightly higher today, retaking the $26 position before losing it again over the past few hours.

Silver Tops $26 To Limit The Weekly Loss

Silver has been on the receiving end for the past few days, dropping below the $26 mark earlier this week. The trend continued yesterday, but the commodity retook the $26 level earlier today. The move allowed it to limit the weekly losses. The rally allowed Silver to limit this week’s retracement drop from the $26.75-80 resistance or the 38.2% Fibonacci level between $23.78 and $28.75.

The technical indicators on the XAG/USD chart show that the commodity is recovering from lower levels. However, it is still down in the negative territory. With no strong follow-through buying, Silver could lose its gains and decline further in the coming hours.

At the moment, the XAG/USD pair is trading around 25.90. Traders would be waiting for a convincing drop below the $25.70 region before they consider the bearish momentum as a buying opportunity.

XAG/USD Could Dip Towards $25

Despite the slight rally by Silver, analysts and market experts are expecting a negative performance over the coming hours and days. Some follow-through selling is expected, and the commodity could trade close to the June monthly lows, around mid-$25.00s.

A dip towards that region will confirm the bearish bias, making the XAG/USD pair vulnerable. With the bearish sentiment in place, the bears could drag the precious metal towards its key $25.00 psychological mark.

On the other hand, if Silver can regain the positive momentum and rally towards 26.25-30, an upside towards the $26.45-50 region would be on the cards. Sustained growth beyond this level has the potential to lift the commodity back toward the $26.75-80 region, which is its 38.2% Fibo level. It could look to surpass the next resistance level above $27 if the rally is sustained.