Silver Price Forecast: XAG/USD Defends Key Bearish Flag Base Near $59.50

• Silver extends its decline for a third straight session on Wednesday.
• The prevailing technical structure continues to favor sellers, supporting the prospect of additional downside.
• A decisive break below the lower boundary of the channel would strengthen the bearish bias and confirm further losses.

Silver (XAG/USD) remains on the defensive for a third consecutive session on Wednesday, trading around the $59.80 area during Asian hours. Despite the weakness, the metal continues to find support near the lower boundary of a short-term descending channel in the mid-$59.00s, close to Tuesday’s weekly low.

From a broader technical perspective, the descending channel resembles a bearish flag pattern following the recent sharp decline. Repeated rejections near the 100-period Simple Moving Average (SMA) on the 4-hour chart further reinforce the prevailing downside bias, suggesting sellers retain control of the near-term trend.

Momentum indicators also lean bearish. The MACD remains in negative territory at -0.33, while the Relative Strength Index (RSI) hovers near 44.16, indicating room for additional losses. Nevertheless, a decisive breakdown below channel support is still required to confirm a deeper corrective move.

Should sellers gain traction below the mid-$59.00 region, XAG/USD could slide beneath the $59.00 psychological level and target the next support zone around $58.35-$58.30, followed by $58.00. Further weakness may expose the $57.25 area, with the decline potentially extending toward $57.00 and the year-to-date low near $55.70 recorded in June.

On the upside, the first significant barrier is the 100-period SMA at $62.32. A sustained move above this level could trigger a test of the upper boundary of the descending channel near $64.21. Only a clear breakout above these resistance levels would negate the current bearish structure and improve the short-term outlook for silver.

XAG/USD H4 Chart