Silver Extends Slide As XAG/USD Hits New Low Below $54

Key Moments

Downtrend Deepens as Sellers Maintain Control

Silver (XAG/USD) continues to lose ground on Friday, extending the sharp decline from the previous session and breaking further below the $54.00 handle. During the Asian session, the metal slumped to its lowest reading since November 2025, as selling pressure persisted and bears pushed to reinforce the established downward trend that has been in place for roughly two months.

The metal remains positioned for a second consecutive week of substantial losses, and the current technical backdrop still favors additional weakness rather than a sustained rebound. Any short-lived corrective upticks are likely to be viewed as opportunities to re-establish short positions, with the $58.00 round figure expected to act as a significant ceiling for now.

Technical Picture: Bearish Bias Dominates

From a trend perspective, XAG/USD continues to trade decisively beneath its 200-day Simple Moving Average (SMA), reinforcing the broader negative tone. Repeated failures this week to gain traction above the $58.00 threshold – which coincides with the 38.2% Fibonacci retracement of the May-July decline – further validate the bearish view.

Momentum indicators are aligned with this stance. The Moving Average Convergence Divergence (MACD) stays in negative territory, with the latest reading at -0.34, signaling that downside forces are still in play. That said, the Relative Strength Index (RSI) hovers near the oversold boundary at 31.53, suggesting that while sellers remain in control, the move could be nearing a fatigue phase rather than the onset of a fresh aggressive leg lower.

Given this mixed signal – strong prevailing downtrend but an RSI approaching oversold levels – a more cautious approach is warranted. Market participants may prefer to wait for a clear and sustained break below $54.00 before committing to new positions aimed at extending the slide that has unfolded over the last two months or so.

Key Levels to Watch

On the upside, the first notable barrier is located near the $55.50 horizontal zone. A move above this level could allow XAG/USD to retest the $58.00 round figure, where prior attempts at a recovery have stalled. Above $58.00, the focus would shift toward the $60.00 psychological mark, followed by the $61.50-$61.55 band and the 23.6% Fibonacci retracement level, situated around $63.00.

Only a decisive break through this cluster of resistance levels would signal that bearish pressure is easing and that there is room for a more durable recovery in silver prices.