Silver Price Consolidation Eases Downside Momentum

The US Dollar's recent weakness has had a mixed impact on silver prices. Despite its safe-haven status, silver is being weighed down by hawkish expectations from the Federal Reserve and higher borrowing costs.

According to technical analysis, XAG/USD is consolidating above $55, but still trades below key moving averages. The Relative Strength Index (RSI) near 44 suggests subdued buying pressure, while a positive Moving Average Convergence Divergence (MACD) reading indicates easing downside momentum.

If silver can break above the 21-day SMA at $58.50, it may lead to a recovery towards $63 and then $70. However, if selling resumes, immediate support is seen at the horizontal level around $55, with a deeper floor near $45.