XAG/USD Struggles Below $76.00 Mark as Silver Price Corrects

White metal traders are witnessing a pullback in silver prices on Thursday as the yellow metal retreats from recent peaks. XAG/USD is trading at $75.98, marking a significant slide from Wednesday’s highs near $83.00, as market participants pivot focus toward macroeconomic catalysts rather than geopolitical tensions.

Market Drivers Shifting Away from Risk Sentiment

The precious metals complex is experiencing weakness despite only moderate risk-off positioning. While US military involvement in Venezuela and escalating China-Japan frictions initially captured headlines, investor attention has decisively shifted to the upcoming US Nonfarm Payrolls data scheduled for Friday’s release. The trajectory of Federal Reserve policy remains the predominant driver shaping asset allocations this week.

Silver price dynamics suggest that safe-haven flows are not sufficiently strong to sustain recent advances. The metal’s inability to hold gains above $82.00 signals growing hesitation among bulls ahead of crucial employment figures.

Technical Setup Points to Deeper Retracement Risk

From a technical perspective, XAG/USD is now testing critical support at the 50-period Simple Moving Average (SMA), positioned at $75.79. This level has functioned as a reliable support floor throughout the uptrend that commenced in late November.

The momentum indicators are flashing warning signals. The Relative Strength Index (RSI) has cooled to 46, indicating fading buying pressure. More significantly, the Moving Average Convergence Divergence (MACD) has crossed below its signal line and ventured into negative territory, with the histogram deepening—a pattern typically associated with accelerating bearish momentum.

Should the $75.79 SMA break decisively lower, bears may gain sufficient conviction to target the December lows around $70.50. Conversely, immediate resistance emerges near $78.00, which must be overcome for silver price recovery attempts to challenge Wednesday’s peak at $82.80 or the late-December all-time high at $85.87.

The technical landscape suggests traders should remain vigilant for either a deeper correction or a consolidation phase ahead of the employment data release.