- Silver attracts sellers for the third straight day and drops to a fresh YTD low on Friday.
- The bearish technical setup backs the case for an extension of the downward trend.
- The RSI is flashing oversold conditions, pointing to the risk of a corrective rebound.
Silver (XAG/USD) extends its descending trend for the third straight day, hitting a fresh low since November 2025 during the Asian session on Friday. The white metal, however, recovers slightly from the $51.00 neighborhood and currently trades near the $51.50-$51.55 region, still down around 1.25% for the day.
From a technical perspective, the decline witnessed over the past month or so has been along a downward parallel channel, which points to a well-established bearish trend. Moreover, momentum indicators hint that sellers have the upper hand despite the risk of short-term corrective bounces amid overstretched conditions.
In fact, the Relative Strength Index (RSI) at 27.21 sits in oversold territory, and the Moving Average Convergence Divergence (MACD) remains negative. Hence, any attempted recovery back above the $52.00 mark is likely to attract fresh sellers near the $52.50-$52.55 region, which, in turn, should cap the XAG/USD near $53.00.
A sustained strength beyond the latter could prompt some follow-through short-covering move, which should allow the white metal to surpass $54.00 and test the channel top near $54.52. This is followed by the 50-period SMA at $54.76. The XAG/USD would need to reclaim that to open the door to a more sustained recovery.
On the downside, a break below $51.00 would make the commodity vulnerable to accelerating the fall towards the $50.00 psychological mark and expose the lower boundary of the channel at $49.07, which forms a more meaningful floor. A sustained break beneath should pave the way toward deeper downside levels.
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