Silver (XAG/USD) Outlook: Selloff Takes a Break, But Is It Over?

Author: Elior Manier

Date: February 3, 2026

Market Overview

The article discusses the recent recovery of metals, particularly silver, following a significant selloff characterized by a rare 7-sigma move in the metals market. Traders are analyzing whether this recovery is a temporary pause or the start of a new trend.

Factors Behind the Selloff

The selloff was attributed to several factors:

• The end of a strong seasonal trend for metals in January, which typically sees industrial orders.
• Profit-taking at month-end after substantial gains.
• The nomination of Kevin Warsh as Fed Chair, which introduced volatility into the market.

The reaction of the US dollar also played a role, as the nomination seemed to restore some market confidence, mitigating extreme price movements.

Current Metal Prices

As of the article's publication, silver had experienced a 41% drawdown but was still up approximately 80% since November 2025. Key price levels for metals were noted:

• Gold around $4,400
• Platinum near $2,000
• Silver approaching $70

Technical Analysis of Silver (XAG/USD)

Daily Chart Analysis

Silver has broken out of a steep upward channel, with a significant test occurring at the $89 to $92 pivot area. A failure to breach this level could indicate further downward movement. The 50-Day Moving Average is currently at $75.92, and a close below this could lead to a correction towards $60.

4-Hour Chart Insights

On the 4-hour chart, silver has breached the 200-MA but shows signs of bull exhaustion. Resistance levels to watch include:

• $89 to $92 (immediate resistance)
• $96 (channel retest)
• $100 to $104 (psychological resistance)

Support levels include $80 to $84 and the 50-Day MA at $75.90.

1-Hour Chart Observations

The 1-hour chart indicates uncertainty, with buying momentum stalling. Key scenarios include:

• Holding the upward trendline could lead to new session highs.
• Rejecting the trendline may test the $84 level.
• A break below the Monday open lows could point to a test of $65.

Conclusion

The article emphasizes the need for caution in the current market environment, where volatility is high, and significant price movements are common. Traders are advised to monitor key resistance and support levels closely as the market continues to evolve.

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