Silver Price Forecast: XAG/USD has a key support level at $35.50

LONDON (June 24) Silver (XAG/USD) is bouncing up from a key support area at $35.50 on Tuesday, following a three-day reversal from multi-year highs at $37.35. The pair is drawing support from US Dollar weakness amid the risk-on mood, but the weak demand for safe havens is also keeping Silver upside attempts limited.

Investors are celebrating what the US President, Donald Trump, announced as a “complete and total ceasefire”, which only hours later is under threat amid accusations of violation from Iran. Israel has vowed a strong response in case of attack, but so far, risk appetite prevails.

On the macroeconomic domain, further calls for Fed easing, this time from the Vice Chair for Supervision Bowman, have underscored the divergence within the Federal Reserve’s committee and increased bearish pressure on the US Dollar ahead of Powell’s testimony to Congress, due later today.

XAG/USD: The $35.50 is the neckline of a bearish H&S formation

A look at the 4-hour charts, and we see the pair moving without a clear bias, with upside attempts limited at below Monday’s high, at $36.40. The Doji candles on the daily chart indicate a hesitant market following a three-day reversal from long-term highs.

The broader trend remains positive, but the lower highs this week anticipate a potential Head & Shoulders pattern, which is often a signal of a trend shift. A break of the neckline, at $35.50, suggests that there is room for a deeper correction, aiming at $34.10 (June 4 low) and the $32.70 area, which held prices on May 22, 27, 28 and 30.

FXStreet