Key Moments
- Silver (XAG/USD) fell from a peak near $86.00 to trade around $74.00, losing over $10 after early Monday gains.
- US President Trump’s comments that peace in Ukraine is “a lot closer” pressured precious metals prices.
- Chinese military exercises around Taiwan and increased naval activity nearby could slow silver’s current pullback.
Geopolitical Developments Pressure Silver Prices
Silver (XAG/USD) dropped sharply from its recent high near $86.00 during early Monday trading. Prices fell more than $10 to trade around $74.00 at the time of writing. This decline followed US President Trump’s remarks, which raised expectations for a potential peace deal in Ukraine.
At a news conference with Ukrainian President Volodymyr Zelenskyy late Sunday, Trump said that peace in Ukraine is “a lot closer,” while noting that major issues remain unresolved. These remarks lifted market optimism and contributed to silver’s decline.
Meanwhile, China launched “major” military drills around Taiwan. Taipei authorities reported that multiple Chinese vessels approached Taiwan’s territorial waters. Rising tensions in this sensitive region could limit silver’s downside and counterbalance some of the recent losses.
Technical Picture: Momentum Eases After Overbought Surge
On the 4-hour chart, XAG/USD trades at $74.92, approaching the 21-period Simple Moving Average (SMA) near $74.00. This SMA offers short-term support and still points to a generally bullish backdrop.
The Relative Strength Index (RSI) sits at 54.79, close to neutral, after retreating from overbought levels. The Moving Average Convergence Divergence (MACD) is moving lower toward the zero line, signaling a slowdown in upward momentum.
Silver got smashed from $83+ to ~$75 today on the CME margin hike. Paper traders panicked, longs liquidated. But guess what? This is the EXACT setup the bulls have been waiting for. Physical buyers (Asia, industrials, ETFs) just got handed a 10%+ discount. The squeeze isn't… pic.twitter.com/BIQU87yLyP
— Arby McPatriot (@ArbyMcPatriot3) December 29, 2025
Key Technical Levels for XAG/USD
Traders watch several support and resistance levels closely. The 21-period SMA near $74.00 offers immediate support. Nearby resistance points will determine whether the recent drop will reverse or continue.
| Level Type | Price Area | Context |
|---|---|---|
| Immediate Support | $74.00 | 21-period SMA on the 4-hour chart provides near-term support |
| Support | $72.60 | Level where XAG/USD faced resistance on December 24 |
| Support Zone | $69.60 – $70.20 | 50-period SMA confluence with Dec 22 high and Dec 24 low |
| Psychological Resistance | $80.00 | Round number likely to challenge bullish recovery attempts |
| Record High | $85.87 | All-time high reached earlier in the session |
On the upside, $80.00 is the first key barrier. A sustained move above it could allow prices to test the all-time high of $85.87.
(The technical analysis was prepared with AI assistance.)
(This story was corrected on December 29 at 09:50 GMT to fix the spelling of Ukrainian President Volodymyr Zelenskyy’s name in the headline.)
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