Silver Price Outlook: XAG Remains Capped Below $60 as Sellers Target $55

• Silver remains trapped below the $60 mark, with the broader bearish trend still firmly in place.
• The RSI is approaching oversold levels, indicating that sellers continue to dominate market sentiment.
• A decisive break beneath $56.61 could pave the way for a retest of the year-to-date low and the key $55.00 support zone.

Silver prices climbed more than 1.5% on Tuesday despite rising US Treasury yields and a resilient US Dollar. Ongoing concerns over the stability of the fragile ceasefire agreement between the United States and Iran helped support the precious metal, with XAG/USD trading around $58.73, above its opening level.

Technical Outlook

Silver continues to trade in a consolidation phase below the $60.00 threshold, struggling to break above either the psychological resistance at $60.00 or move decisively away from its year-to-date low of $55.63.

Technical momentum remains tilted to the downside, as reflected by the Relative Strength Index (RSI), which is approaching oversold territory and suggests bearish pressure remains dominant.

Should sellers regain control, a break below the intraday low at $56.61 could trigger further losses. The next downside targets lie at the YTD low of $55.63 and the key $55.00 support level. A sustained move beneath these levels could open the door to the November 13 former resistance-turned-support at $54.39, with the psychological $50.00 mark emerging as a longer-term downside objective.

Conversely, a bullish reversal would require buyers to reclaim the March 23 swing low, now acting as resistance, at $61.01. If that barrier is overcome, attention would shift to the 200-day Simple Moving Average near $69.72, followed by the significant $70.00 level.