Silver Pauses Below $72 After 75% RSI Surge as Christmas Masks Next Move
Silver prices slipped in the final trading session of the year, easing back a bit from recent highs to trade at about $71.85.
Quick overview
- Silver prices have pulled back slightly to around $71.85 after a recent rally, but demand remains strong amid market uncertainty.
- The macroeconomic environment is favorable for precious metals, with low interest rate expectations supporting silver's performance.
- Technical indicators suggest that silver is consolidating within an upward channel, with key support levels at $70.75 and $69.55.
- Traders will be monitoring silver's ability to maintain its position above critical support zones as markets reopen after the holiday.
Silver prices slipped in the final trading session of the year, easing back a bit from recent highs to trade at about $71.85. With the global markets closed for Christmas Day, tomorrow’s close becomes the main reference point. It’s also likely a struggle to get any real volume going until trading gets back into full swing.
The silver price has had a modest pullback following a sharp multi-session rally, but so far all the signs suggest it’s just consolidating rather than starting to slow down in a big way. And that’s because demand for silver is still looking strong, even amid all the uncertainty in the wider financial markets.
Macro Backdrop Still Looks Pretty Favourable for Precious Metals
The US dollar had a wobbly day, but expectations that the Federal Reserve will keep interest rates pretty low are still not letting the dollar pick up too much steam. Lower real interest rates and hopes of interest rate cuts have kept precious metals like silver and gold looking solid.
Meanwhile, there’s still plenty of uncertainty, and investors are sticking with safe bets like silver. That suggests that silver’s recent pullback is more of a technical blip rather than a sign of major trouble brewing.
Silver Technical Outlook After Christmas
On the 4-hour chart, silver is showing signs of consolidation after that big run-up to $72.74. Price is still inside a big upward channel, but just taking a breather at the moment. For now, the bigger trend is still looking pretty healthy.
[[XAG/USD-graph]]
The last few candlesticks have shown a bit of supply pushing in, but not enough to suggest silver’s losing steam just yet. Momentum has dropped back a bit, but all the structure is still in place.
Things to keep an eye on:
- Immediate support: $70.75 (0.236 Fibonacci level)
- Deeper levels: $69.55 (0.382), $68.60 (0.50)
- Trend support: roughly $67.60 (0.618 Fib + channel)
- Resistance levels: $72.74, then $74.30
- Next possible zone: up around $75.90
The 50-day EMA is still trending upwards at $67.26, and that’ll provide some support if things do start to go wrong. The 100-day EMA at $63.81 also provides a safety net. The RSI is up at 75, indicating a bit of a price stretch, but the momentum is still strong.
What to Watch When Markets Open Up Again After the Holiday
As markets reopen after the holiday, traders will be watching whether silver can hold its ground above the $70.75–$69.55 zone. If it can hold, that’ll keep the bias pretty strongly in favour of continuing to push higher, rather than getting into some correction.
Trade idea: Buy near $70.75, stop just below $68.60, and you’re looking at a potential target of $72.75 to $75.90 if things go in the right direction.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save