Silver Price Forecast: XAG/USD hesitates at $38.00 amid growing bearish momentum

LONDON (August 15) Silver (XAG/USD) remains vulnerable, following a sharp reversal from $38.75 on the previous day. Precious metals slid on Thursday after the release of strong US PPI figures, and Silver is struggling to return above the $38.00 level on Friday.

US producer prices showed their fastest growth in three years in July, beating market expectations and confirming that Trump’s tariffs are starting to boost inflationary pressures, which calmed investors’ hopes of Fed cuts and sent the US Dollar rallying across the board.

Technical analysis: XAG/USD has broken trendline support

From a technical perspective, an impulsive reversal from the $38.75, which has pushed price action below the ascending trendline support, and the bearish divergence in the 4-Hour RSI suggest that a deeper correction is on the cards.

The pair is clinging above Thursday’s lows, at $3785 so far, with the next bearish target at the August 12 low, at $37,60, ahead of the August 5 low, at $37.30.

To the upside, the reverse trendline, now at $38.10, is keeping bears in control. A bullish reaction above here would ease negative pressure and shift the focus towards the resistance area around $38.40 (intra-day level) ahead of Thursday’s high, at the mentioned $38.75 level.

FXStreet