Silver and Gold Price Forecast: XAG/USD Faces Correction Risks Below the $76 Mark

Technical deterioration signals deeper pullback potential for precious metals

Silver markets are showing signs of technical weakness as XAG/USD extends losses below the $76.00 level, moving away from earlier this week’s recovery attempt near $83.00. The precious metal’s struggle reflects a broader rebalancing in sentiment, though the underlying driver appears to be not the geopolitical backdrop—which has taken a lower priority—but rather the anticipation surrounding the upcoming US Nonfarm Payrolls data and Federal Reserve policy direction.

The momentum shift in silver prices serves as an important indicator for gold price future prediction, as both precious metals typically move in tandem when macro factors dominate. Investors have opted to dial back exposure to risk-sensitive assets, leaving silver vulnerable to additional downside exploration.

Technical Indicators Point to Bearish Continuation

At current levels near $75.98, XAG/USD is testing a critical dynamic support zone anchored by the 50-period Simple Moving Average (SMA) at $75.79. This moving average had successfully protected prices during the uptrend that began in late November, but the recent lower high formation on Wednesday suggests the protective role is weakening.

The breadth of weakness is evident across momentum oscillators. The Relative Strength Index (RSI) has retreated to 46, indicating cooling purchasing power, while the Moving Average Convergence Divergence (MACD) has crossed below its signal line and ventured into negative territory. The histogram expansion reinforces a bearish bias rather than a temporary pullback.

Where Silver Could Find Support or Resume Decline

A definitive break beneath the $75.79 SMA level would likely embolden sellers to probe the late-December lows around $70.50, establishing a fresh target for the correction. On the upside, bulls face resistance at the $78.00 zone before any attempt to reclaim Wednesday’s highs near $82.80 or challenge the December peak at $85.87.

For those forecasting gold price movements and broader precious metals direction, the breakdown in technical structure is a warning signal that mean reversion may extend further rather than reverse immediately. The path of least resistance appears lower in the near term unless momentum indicators can stabilize above their current depressed readings.