Silver Prices Stabilise Near Record Highs

As the XAG/USD chart shows, the price of silver per ounce is consolidating near its all-time high, which lies above $85.

Bullish sentiment dominates the market, as concerns over the independence of the US Federal Reserve, heightened geopolitical tensions, and other factors have fuelled demand for safe-haven metals. According to media reports:

→ Official authorities are exerting pressure on the Fed to cut interest rates, having opened a criminal case against its Chair. Powell, in turn, described these actions as a “pretext” for influencing the decisions of an independent financial institution.

→ Traders are also closely monitoring the escalation of protests in Iran, which could lead to US military involvement, alongside President Trump’s statements about the annexation of Greenland. In the aftermath of the operation in Venezuela, such scenarios are increasingly being viewed as realistic.

Technical Analysis of the XAG/USD Chart

On 29 December, we updated the previously drawn ascending channel and suggested a potential decline in silver prices towards its lower boundary, with a possible bearish breakout attempt.

Indeed, prices moved down to the lower boundary. However, after the formation of an Inverted Head and Shoulders (IHS) pattern, bulls found support there and resumed the upward trend.

The current consolidation in XAG/USD confirms the role of the channel median, which appears to act as a reference level acceptable to both buyers and sellers. That said, today’s CPI release could disrupt this balance. Possible scenarios include:

→ a pullback towards the psychological support around $80, where the bullish impulse marked by the arrow began;
→ a rise towards the QH line, which divides the upper half of the channel into two quarters.

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