Silver Price Forecasts: XAG/USD tests levels sub-$63.00 as bearish pressure mounts

Silver (XAG/USD) has experienced a downward trend for the past two days, sliding beneath the $63.00 mark on Wednesday following a shift from the $66.50 range on Tuesday. The precious metal is facing skepticism as global markets become more cautious due to the worsening situation in the Middle East, with oil prices remaining elevated.

The Memorandum of Understanding between the US and Iran lapsed on Monday, and US President Donald Trump affirmed on Tuesday that no negotiations are underway with Tehran. Sea traffic through the Strait of Hormuz is limited, contributing to higher oil prices, with Brent Oil reaching $90, up about 6% over the past three days. XAG/USD is currently trading at $63.09, with bears applying pressure around the $63.30 support level, marking the lowest point of last week's trading range and a previous resistance area.

Technical indicators suggest a bearish outlook, with the 4-hour Relative Strength Index (14) moving towards the mid-30s, and the Moving Average Convergence Divergence (MACD) becoming more negative. A break below the $63.30 level could shift focus to the August 6 low at $60.90, and a move above $60.30 may encourage bulls to challenge the $67.00 resistance area, followed by a key resistance zone around $71.55 and the 200-day Simple Moving Average (SMA) at $71.85.