Silver Price Forecast: XAG/USD approaches YTD lows at $54.77 after breaking lower

• XAG/USD falls more than 3% on Thursday to session lows below $56.00
• Rising Oil prices keep precious metals under pressure.
• The year-to-date low of $54.77 is the bears’ target.

Session lows below $56.00 mark a resumption of Silver’s (XAG/USD) broader downtrend on Thursday, following a sharp reversal from the $58.00 region. Higher Oil prices are putting pressure on precious metals, encouraging Silver bears to seek a retest of the year-to-date (YTD) lows at $54.77.

Reports that Israel is considering fresh attacks on Iran after the US midterm election gave Crude prices another lift on Thursday. Such a move would make a negotiated resolution to the conflict more difficult.

At the same time, the Iran-backed Houthis have stepped up attacks against Saudi Arabia. Two people were reportedly killed in a drone strike on Aframco’s Shaybah Oil field, renewing fears of disruption to Saudi Oil supplies. After gaining more than 2% over the previous two days, Brent Crude is trading above $108.00 per barrel at the time of writing, close to the five-month highs of $109.37 reached in mid-May.

Technical Analysis: Silver bears set their sights on the 2026 low of $54.77

At $56.20, XAG/USD remains inside a broad descending channel, while momentum indicators point to strengthening bearish pressure. Around 36, the 4-hour Relative Strength Index (14) signals persistent downside pressure but is not at an oversold extreme. Meanwhile, the Moving Average Convergence Divergence (MACD) has slipped below zero, indicating that attempts to recover remain fragile against the prevailing downtrend.

The first support zone lies between last week’s lows of $55.10 and the previously noted 2026 low of $54.77. Below that, the lower boundary of the bearish channel extending from the August highs currently sits around $53.65.

Initial resistance on the upside comes at the recent trading range’s upper limit, around $58.501. The descending channel’s upper boundary, near $60.35, provides the next barrier, followed by the early October highs around $62.00.

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