On December 29, 2025 (GMT-5), XAG/USD delivered a dramatic intraday reversal, oscillating between a fresh all-time high of approximately $86.00 in early trade and a near-9% decline—representing the pair’s most severe single-day drop in four years—before settling below the $75.00 mark. The catalyst for this sharp selloff was the CME Group’s upward revision to silver futures margin requirements, which triggered forced liquidations among leveraged market participants; this downward momentum was further amplified by year-end profit-taking flows, diminished late-December market liquidity, and a pullback in safe-haven allocations amid growing optimism surrounding a potential Ukraine peace agreement. While the correction was steep, XAG/USD found technical support near the $74.00 level, coinciding with the 21-period simple moving average, and preserved its exceptional year-to-date advance of over 180%—a trend underpinned by enduring bullish fundamentals including 2026 Federal Reserve rate cut expectations, robust industrial demand from the solar, electric vehicle, and AI sectors, persistent global supply bottlenecks, and strong inflows into silver-backed ETFs. Looking ahead, the short-term market bias has shifted to bearish territory, with a projected target price of $73.35 for the subsequent trading session.
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