Silver price corrects almost 6% to near $86.50 during the Asian trading session on Thursday. The white metal retraced from its all-time high of $93.51 posted on Wednesday after United States (US) President Donald Trump said that Iran assured it will stop killings of protesters, and has no plans of large-scale civil executions, resulting in a decline in appeal of safe-haven demand.

Market sentiment remained risk-averse as US President Trump threatened military action against the government of Supreme Leader Ayatollah Ali Khamenei for executing protestors amid civil unrest in Iran. The assurance from Tehran that it will stop executions of civilians has downplayed the risks of US military action.

Meanwhile, expectations from the Federal Reserve (Fed) that it won’t reduce interest rates in the policy meeting later this month are also weighing on the Silver. The speculation for the Fed pausing its ongoing monetary easing campaign intensified after the release of the US Consumer Price Index (CPI) data on Tuesday, which showed that price pressure remained sticky.

Going forward, the major trigger for the Silver price will be the announcement of the new Fed Chairman by the White House. US President Trump said in December that he would announce the successor of Fed Chair Jerome Powell sometime in January. The comments from Trump in his latest interviews showed that White House Economic Adviser Kevin Hassett, former Fed Chair Kevin Warsh, and current Fed Governors Christopher Waller and Michelle Bowman are major contenders to replace Jerome Powell.

Silver technical analysis

XAG/USD trades sharply lower to near $88.50 as of writing. The 20-day Exponential Moving Average rises and sits at $77.48, reinforcing an upward bias as THE price holds well above it. Its positive slope supports the trend and keeps pullbacks contained around the average.

The 14-day Relative Strength Index (RSI) at 68 (near overbought) reflects firm momentum after cooling from recent extremes, which could cap immediate upside if it stalls.

As long as the pair stays above the rising 20-EMA, bulls retain control, and an extension of the advance would remain the base case. A close below the 20-day EMA would shift the bias toward consolidation and open room for further downside toward the January 8 low of $73.85.

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

XAU/USD Current price: $4,617

• Unimpressive US data left the US Dollar at the mercy of sentiment.
• Speculative interest awaits clarity about Federal Reserve leadership.
• XAU/USD retreated after reaching fresh highs, buyers keep adding on dips.

Spot Gold extended its record rally on Wednesday to $4,642, slowly but steadily grinding north as risk sentiment turned off.  The US Dollar (USD) also found some favor in the dismal mood, resulting in the bright metal retreating towards the current $4,610 area.

The United States (US) published some relevant macroeconomic figures, which fell short of triggering some relevant action: The country reported that Retail Sales were up 0.6% in November, beating expectations, although the core reading was a miss, with the Retail Sales Control Group posting a modest 0.4% advance. The US also released shutdown-delayed Producer Price Index (PPI) data, which showed that the core annual PPI rose to 3% in November, signaling stubborn price pressures at the wholesale level.

Other than that, the focus remains on the Federal Reserve (Fed). Some Fed officials hit the wires, with Bank of Philadelphia’s Anna Paulson saying she foresees further rate cuts later this year if the forecast meets their expectations.  Stephen Miran also shared his thoughts at a separate event, leaning dovish. Still, uncertainty about how the Fed will operate once current Chairman Jerome Powell steps down keeps investors uninterested.   

 XAU/USD short-term technical outlook

The 4-hour chart shows XAU/USD maintains its positive tone and trades above all its moving averages. The 20-period Simple Moving Average (SMA) rises above the 100- and 200-period SMAs, with the shorter one at $4,591.39 offering initial dynamic support. At the same time, the Momentum indicator turned flat above its midline, while the Relative Strength Index (RSI) indicator stands at 64, also lacking directional strength.

In the daily chart, the 20-day SMA stands at $4,438.80 while rising above the 100- and 200-day SMAs, with all three trending higher, in line with the dominant bullish trend. Finally, technical indicators partially lost their upward strength, but remain well above their midlines, reflecting the near-term retracement rather than suggesting upward exhaustion.

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

Silver price (XAG/USD) extends its winning streak for the fourth trading day on Wednesday. The white metal rallies further to near $90.00 during the Asian trading session as demand for safe-haven assets remains firm amid geopolitical tensions.

Civil unrest in Iran as the general public demands political change due to surging inflation, falling Rial against the US Dollar (USD), and the government’s corruption has resulted in the killing of hundreds of protesters.

In response, United States (US) President Donald Trump has warned the military action in Tehran if the government continues killing protesters.

Meanwhile, higher concerns over Federal Reserve’s (Fed) independence, following criminal charges on Chairman Jerome Powell over mismanaging funds allocated for the renovation of Washington’s headquarters, which he called as “pretext”, a consequence of Fed setting interest rates based on its assessment of the public interest rather than the president’s preferences”, have kept safe-haven assets on the front foot.

The event led to a sharp decline in the US Dollar, as market experts warned that an attack on the Fed’s autonomous status could weigh on US sovereign rating. However, the US Dollar has rebounded quickly after chiefs from global central banks have supported Fed’s Powell over his feud with President Trump.

“We stand in full solidarity with the Fed System and its Chair Jerome H. Powell,” heads of the European Central Bank (ECB), Bank of England (BoE), and nine other institutions said collectively on Tuesday.

Silver technical analysis

XAG/USD trades higher near $90.00 as of writing. The advance remains firm, with buyers maintaining control as momentum stretches into overbought territory.

The 14-day Relative Strength Index (RSI) at 74.77 (overbought) and rising from 72.52 confirms strengthening bullish pressure. While the bias points higher, stretched conditions could cap follow-through and prompt consolidation.

A moderation in momentum with RSI easing toward 70 would help reset the move and support a steadier grind. Conversely, a renewed acceleration in RSI toward the prior extreme near 85.90 would leave the rally vulnerable to a sharper pullback as momentum fatigue builds.

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

XAU/USD Current price: $4,610

• The December United States Consumer Price Index came in line with expectations.
• US President Donald Trump announced fresh tariffs on those trading with Iran.
• XAU/USD reached fresh record highs, risk sentiment likely to keep it running.

Broad US Dollar (USD) weakness kept Gold afloat on Tuesday, with the XAU/USD pair trading above $4,600. The Greenback ticked lower at the beginning of the American session, following the release of the United States (US) Consumer Price Index (CPI), but quickly resumed its advance, amid a risk-averse environment.

The CPI rose at an annualized pace of 2.7% in December, while the monthly increase was of 0.3%, as expected. Core inflation was reported at 2.6% and 0.2%, respectively, slightly lower than anticipated but matching November readings. The figures reaffirmed the market’s view that the Federal Reserve (Fed) will keep interest rates unchanged in the near term, putting pressure on high-yielding assets such as equities and bonds.

XAU/USD initially rallied to a fresh all-time high of $4,634, later giving up to broad USD demand. Still, and as a dismal mood rules financial markets, the bright metal retracement was limited.

Meanwhile, US President Donald Trump added fuel to the fire: earlier in the day, the US leader announced tariffs of 25% on those countries doing business with the Islamic Republic of Iran. New levies will be effective immediately and apply to “any and all” business done between those countries and the USA.

The US will release November Retail Sales on Wednesday, another first-tier figure that could shape USD demand.

XAU/USD short-term technical outlook

The 4-hour chart shows XAU/USD trades around $4,610, retaining its positive tone. The 20-period Simple Moving Average (SMA) stands above the 100- and 200-period SMAs, and all three slope higher, while the price develops above all of them, underscoring a firm bullish bias. The 20 SMA currently stands at $4,548.34, offering nearby dynamic support. Meanwhile, the Momentum indicator eases within positive levels, while the Relative Strength Index (RSI) indicator turned neutral at around 67, reflecting the ongoing pause in the latest run.

In the daily chart, XAU/USD is up for the fourth consecutive day. The 20-day SMA extends its advance above the 100- and 200-day SMAs, reinforcing a bullish structure. All three SMAs trend higher, and price holds above them, with the shorter one at $4,424 drawing a line in the sand. Finally, technical indicators are barely easing from extreme overbought readings, reflecting the ongoing correction and far from suggesting the bullish run is over.

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