Silver Technical Analysis: Pullback Below $75.00 Amid Geopolitical Uncertainty

Silver’s dramatic retreat from historic peaks continues to shape market dynamics, with XAG/USD trading in the $74.00 region following a sharp decline from the record high of $86.00 reached earlier in the week. The precious metal’s loss of over $10 reflects the impact of shifting geopolitical narratives, particularly surrounding Ukraine peace negotiations and escalating regional tensions.

Shifting Sentiment Fuels Silver’s Downside Pressure

Recent diplomatic developments, including talks between US and Ukrainian leadership suggesting improved prospects for conflict resolution, have reduced the safe-haven appeal that typically supports precious metals. This sentiment shift has proven more influential than broader market concerns, temporarily dampening investor demand for Silver as a protective asset. Concurrently, intensifying military activities near Taiwan have introduced fresh uncertainty, though these developments appear insufficient to reverse the current pullback decisively.

Technical Analysis: Silver Consolidates Within Key Range

From a technical standpoint, XAG/USD’s current positioning reveals important structural patterns. The precious metal is testing the 21-period Simple Moving Average near the $74.00 support level, which continues to anchor the broader uptrend. The Relative Strength Index (RSI) stands at 54.79, having retreated from overbought extremes into neutral territory, while the Moving Average Convergence Divergence (MACD) indicator has begun rolling lower toward the zero line, suggesting momentum is gradually fading.

The immediate support structure for Silver technical analysis extends below the 21-day SMA, with the next meaningful floor located at $72.60—a level that halted declines on December 24. Should weakness persist, the broader support zone between $69.60 and $70.20 merges three significant technical confluences: the 50-period SMA alignment with both the December 24 low and December 22 high.

Resistance Framework and Recovery Potential

On the upside, Silver faces initial resistance at the $80.00 psychological threshold, which would need to be overcome for a convincing bullish recovery. Beyond this level, the focus shifts toward reclaiming the all-time high at $85.87, which marked the session peak earlier in the trading week. Recovery momentum would need to clear $80.00 decisively for markets to signal renewed conviction in higher prices.

The interplay between supportive technical levels and external political factors will likely dictate Silver’s near-term trajectory, with the precious metal caught between mean-reversion patterns and headline-driven volatility.