Silver (XAG) Forecast: Testing 50% of All-Time High, Will Long-Term Bulls Step In?

Author: James Hyerczyk

Updated: June 24, 2026

Key Points

• XAG/USD dropped to $60.74 before rebounding, focusing on the $60.83 support level.
• The upcoming PCE inflation report could determine silver's stabilization or further decline.
• Silver is testing critical support at the 50% retracement of its all-time high.

Current Market Analysis

Spot Silver (XAG/USD) has recently dropped to its lowest level since December 2025, hitting $60.74 before a slight recovery. Currently, it is trading at $61.18, down 0.62%. The market is closely monitoring the $60.83 level, which represents the 50% retracement of its all-time high of $121.67. This level is crucial as it could act as both support and resistance.

Technical Analysis

Silver is under pressure, with traders weighing the significance of the $61.00 to $60.83 range. The bulls are hoping for a significant buyer to defend this area, while bears may be poised to push prices lower. The $61.00 level is notable as it previously fueled a rally to $89.38. A break below $60.83 could lead to further declines.

Market Influences

The US Dollar Index (DXY) has reached its highest level since May 2026, impacting silver demand globally. A stronger dollar means higher costs for international buyers, leading to decreased demand for silver. The Federal Reserve's recent decisions have also contributed to silver's decline, with expectations of rate hikes affecting market sentiment.

Upcoming Economic Indicators

The PCE inflation report scheduled for Thursday is critical. A soft print could provide a reason for buyers to step in, while a hot print would likely reinforce the bearish sentiment. The market is also watching GDP revisions and jobless claims, but the PCE report is the primary focus for silver traders.

Conclusion

The $60.83 level is pivotal for silver's future direction. If buyers can defend this support and a bullish reversal pattern forms, it may signal a potential recovery. However, if this level fails, the next support is significantly lower, and the bearish trend may continue. Traders should remain vigilant and prepared for volatility as the market reacts to upcoming economic data.

About the Author

James Hyerczyk is a seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement.