Silver (XAG) and other metals fall as Markets price-in ease in Ukraine War

[Redator]

Precious metals are having a rough day – As a matter of fact, most of the outperforming asset classes since April or even beginning 2025 are seeing strong profit-taking flows.

The dynamics of this year were evolving on outflows from the US Dollar into a fast-evolving Tech-sector and everything linked to it, comprising Cryptocurrencies (which also promise to offer an edge against fiat, US Dollar influences).

Another one of the themes was a de-globalization trend, with participants betting heavily on precious metals to bypass a more divided global trade.

This had led to a great performance of Gold, also dragging other metals higher like Platinum and the subject of today's analysis: Silver.

A look at the daily performance in Metals, August 19, 2025 – Source: TradingView

Metals are down about 1% on average in today's session, with Gold holding a bit better than the others (still down around 0.40%).

Read More: The US Dollar (DXY) pauses at 98.00 as markets await clarity – What's next?

Silver Daily Chart

Silver Daily Chart, August 19, 2025 – Source: TradingView

Silver is evolving in an upward channel since mid-2024 as Markets started to account for the gradual pricing of interest rate cuts around global central banks.

Inflation calmed and with rate projections going down, the conditions for a rally led by Gold were ideal.

Particularly in a world where Participants start to look for edges, metals had found what they needed to rise, with Silver then evolving in a strong rising channel taking it to 13 year highs.

But looking at where we are right now, it seems that profit-taking is happening around the highs of that channel after some spikes.

A few weeks of lack of concrete upward progress with upgrading US reputation and lesser tensions lead to some natural correction in prices – Silver is currently down 1.86% on the session and forming a Head and Shoulders.

If it had to materialize, a measured move target would take the metal to its 200-Day moving average between $32 to $32.5.

This is of course a bit far compared to where we are right now, but looking at higher timeframes allows to give out projections (which can always go very different).

However, still take a look at reactions to the 50-Day MA (yellow line) acting as immediate support (37.30)

Silver 4H Chart

Silver 4H Chart, August 19, 2025 – Source: TradingView

Silver caught a stray in today's trading, looking at the past 4H red bar closing at its lows.

Arriving at the key 37.50 Pivot Zone, Markets are now showing an indecision doji as prices become oversold on the current timeframe.

It will now be key to spot if sellers have enough strength to push prices below.

The Pivot will be highly key to the upcoming price action.

Levels to watch for Silver (XAG) trading:

Resistance Levels:

• 4H MA 50 acting as immediate resistance ($38.06)
• Resistance $38 to $38.50
• 2025 High resistance between $39 to $39.50
• 2025 Highs 39.50

Support Levels:

• Low of Pivot Zone and 50-Day MA, Immediate support (daily lows $37.20)
• Support 36.20 to $36.70
• Support 2 35.40 to 35.75

Silver 1H Chart

Silver 1H Chart, August 19, 2025 – Source: TradingView

Looking even closer shows another smaller Head And Shoulders pattern (Mini H&S on the chart), with the target showing it to go towards the Support 1 Zone.

The 1H RSI is way into oversold territory however, so it would be curious to see what Market players do from here – Consolidation has the highest technical probability from what I see.

Some key global PMI data is expected to release, therefore price action may just consolidate in the meantime.

Safe Trades!

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