Silver Price Forecasts: XAG/USD picks up above $64.00 with bears still in control

Silver (XAG/USD) appreciates on Thursday, reaching session highs at $64.50 at the time of writing, after hitting two-and-a-half-month lows at $61.50 earlier on the day. News about ongoing negotiations between the US and Iran has soothed markets, providing some support to the ailing white metal.

CNN News reported earlier on Thursday that US-Iran talks are still on track, citing a diplomatic source, which raises hopes of a negotiated end to the war. The precious metal had extended its decline earlier on the day, as the US launched a new round of attacks on Iran’s military sites and Tehran responded by targeting US assets in the area.

In the US, Consumer Price Index (CPI) figures released on Wednesday showed that inflation rose at its fastest yearly pace in more than three years, increasing hopes that the Federal Reserve (Fed) will be forced to hike interest rates at least once this year. The CPI release sent US Treasury yields and the US Dollar higher, adding weight on precious metals.

Technical Analysis: Silver remains vulnerable while below $66.00

XAG/USD bounces up from oversold levels but retains the bearish near-term bias intact, with upside attempts likely to meet significant resistance at a previous support zone above $66.00. Momentum indicators remain soft, with the 4-hour Relative Strength Index below the key 50 level and the Moving Average Convergence Divergence (MACD) near zero, suggesting lower downside pressure rather than a decisive reversal.

Bulls would have to breach the June 8 low at $66.04 to ease downside pressure and shift the focus to the confluence of the bearish channel's top, at $68.50, and the June 8 and 9 highs around the $69.00 area.

On the downside, the pair might find support at the channel floor, now around $62.00, although the key support area is the year-to-date low, near $61.00. Further down, the next target would be the $60.00 psychological area.

(The technical analysis of this story was written with the help of an AI tool.)