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Silver (XAG/USD) experienced a modest increase during the Asian session, reaching near $79.00, but subsequently faced selling pressure, leading to a fresh daily low in the last hour. The 100-period Simple Moving Average (SMA) on the H4 chart remains a critical level for traders to monitor, as it could determine the metal's near-term direction. Technical indicators suggest that a break above $77.00 may attract buyers, while a sustained drop below this level could intensify bearish momentum.
For traders, the 100-SMA acts as a dynamic support/resistance zone, influencing short-term sentiment and order flow. Silver's volatility is often tied to macroeconomic factors like inflation expectations and central bank policies, making it a barometer for risk appetite. A decisive move in either direction could trigger broader market reactions, especially in commodities-linked equities and precious metals.
Looking ahead, the $77.00 level will be pivotal for XAG/USD. If buyers reclaim this level, the next target could be $79.00, while a breakdown might push the price toward $75.00. Traders should also watch for volume patterns and key Fibonacci retracement levels to gauge the strength of any potential reversal.
