Silver Price Forecast: XAG/USD falls to near $31.00 support, channel’s lower threshold

Silver price could test the primary support at the psychological level of $31.00.

The daily chart analysis indicates an increasing bearish bias, with the descending channel pattern continuing to expand.

The pair could approach the initial resistance at the nine-day EMA of $31.83.

Silver price (XAG/USD) remains steady after registering losses in the previous session, trading near $31.20 per troy ounce during the early European session on Friday. Technical analysis on the daily chart indicates a strengthening bearish outlook, with the grey metal moving downwards within a descending channel pattern.

Silver price also remains below the nine-day and 14-day Exponential Moving Averages (EMAs), signaling weakened short-term momentum. Additionally, the 14-day Relative Strength Index (RSI) falls below the 50 mark, confirming the bearish bias is active.

To the downside, the XAG/USD pair may find initial support at the psychological level of $31.00, followed by the lower boundary of the descending channel at the 30.70 level. A break below this level could reinforce the bearish bias, potentially pushing Silver's price toward the five-month low of $28.74, last seen on December 19.

Silver price could encounter initial resistance at the nine-day EMA of $31.83, followed by the 14-day EMA at $31.89. The further barrier appears around the descending channel’s upper boundary at the $32.10 level. A break above this crucial resistance zone could restore the bullish outlook, potentially pushing the pair toward the four-month high of $33.40.

XAG/USD: Daily Chart