Silver (XAG/USD) has lost more than $10 since hitting a fresh record high near $86.00 on Monday’s early trading. The precious metal has retreated to levels in the $74.00 area at the time of writing, weighed by comments by US President Trump about the chances of a peace deal in Ukraine.
Trump appeared at a news conference, together with Ukrainian President Volodymyr Zelenskyy, late Sunday, and said that he thinks that peace in Ukraine is “a lot closer,” although he acknowledged that thorny issues remain.
Meanwhile, China has announced “major” military exercises around Taiwan, and Taipei affirmed that several Chinese vessels have been seen near Taiwan’s territorial waters. A further escalation of tensions in an already sensitive area, which might limit the current reversal of precious metals.
Technical Analysis: Silver corrects from overbought levels
In the 4-hour chart, XAG/USD trades at $74.92, approaching the 21-period Simple Moving Average (SMA), at the $74.00 area, which is providing support and highlights the broader bullish bias. The Relative Strength Index (RSI) stands at 54.79, near neutral levels, after unwinding from overbought territory, while the Moving Average Convergence Divergence (MACD) turns lower toward the zero line after recent highs, suggesting waning upside momentum.
Below the mentioned 21-day SMA, the next support levels are seen at $72.60, where the pair was capped on December 24, and the area between $69.60 and $70.20, where the 50-period SMA converges with the December 24 low and the December 22 high.
To the upside, the $80.00 psychological level is likely to check the strength of a potential bullish reversal, ahead of the all-time high, at $85.87 hit earlier on the day.
(The technical analysis of this story was written with the help of an AI tool)
(This story was corrected on December 29 at 09:50 GMT as the name of Ukraine’s President Volodymyr Zelenskyy was misspelled in the headline.)
Source: https://www.fxstreet.com/news/silver-price-forecasts-xag-usd-drops-below-7500-after-trump-zelenkyys-meeting-202512290922
