Technical Pressure Mounts on XAG/USD as Peace Talks Weigh on Silver CFD Price Below $75

Geopolitical Backdrop Shifts Market Sentiment

The White metal has experienced a sharp pullback from its recent milestone, with XAG/USD retreating significantly after hitting an intraday peak near $86.00 on Monday. At current trading levels around $74.92, silver CFD prices have surrendered more than $11 in value as investors reassess risk positioning. The primary driver centers on renewed optimism surrounding Ukraine peace negotiations, following a high-profile news conference where US President Trump suggested resolution prospects have improved materially. Such comments typically diminish demand for safe-haven assets like precious metals, as reduced geopolitical risk naturally redirects capital flows.

Complicating the narrative, military activities have intensified around Taiwan, with Chinese authorities announcing large-scale exercises and reports of increased vessel movements near the island’s waters. Rather than supporting silver through enhanced risk-off sentiment, this development has been overshadowed by the Ukraine-focused narrative, leaving room for further downside consolidation.

Technical Structure Suggests Consolidation Phase

The 4-hour chart reveals XAG/USD approaching the 21-period Simple Moving Average around $74.00, which continues to underpin the longer-term bullish framework despite current weakness. The Relative Strength Index has retreated to neutral territory at 54.79 after climbing into overbought conditions, while the MACD indicator has turned negative as it approaches the zero line—a telltale sign that upward momentum is decelerating.

Should the White metal break beneath the 21-day SMA support, the next layer of price defense emerges at $72.60, where selling pressure previously capped the December 24 session. A more significant floor resides between $69.60 and $70.20, where the 50-period SMA aligns with both the December 24 low and December 22 high, creating a confluence zone.

Recovery Path Faces Technical Hurdles

For silver CFD traders monitoring upside potential, the $80.00 psychological barrier represents the first meaningful resistance to reclaim before challenging the recent all-time high of $85.87. Recovery momentum would require not only technical breakout but also a shift in the geopolitical narrative or confirmation that peace discussions have stalled. Until then, the precious metal remains vulnerable to further consolidation within its established technical range, with the balance of risk tilted toward the downside in the near term.