December 17, 2025
Silver Technical Analysis Report – 17 Dec 2025: XAG/USD Hits Record Highs Amid Industrial Surge
Dubai, UAE – December 17, 2025 – Gold Trade, Dubai, the region's leading authority on precious metals, is pleased to release today’s exclusive technical analysis for silver.
In a historic session, Silver (XAG/USD) has surged past the psychological barrier of $65.00, marking an extraordinary 130% gain year-to-date. As of mid-day trading in Dubai, silver is priced at approximately AED 7.75 per gram (spot), outperforming nearly every major commodity asset class in 2025. This report delves into the technical indicators, market drivers, and local Dubai price trends shaping the "White Metal's" meteoric rise.
Market Context: Silver’s Decisive Breakout
While gold has traditionally held the spotlight in the UAE, 2025 will be remembered as the year silver reclaimed its crown as the "high-beta" play of the precious metals sector. On Wednesday, 17 December 2025, silver successfully breached its previous all-time high of $64.66, fueled by a unique convergence of monetary easing and a structural deficit in industrial supply.
Key Fundamental Catalysts:
- The Federal Reserve Pivot: A weakening U.S. labor market (unemployment at 4.6%) has solidified expectations for aggressive interest rate cuts in 2026, lowering the opportunity cost for non-yielding assets.
- The Green Revolution: Explosive demand from the solar energy and Electric Vehicle (EV) sectors has kept silver inventories at multi-year lows.
- Safe-Haven Diversification: Amid geopolitical friction and U.S. dollar volatility, institutional investors are increasingly viewing silver as a necessary portfolio hedge.
Technical Analysis: Analyzing the XAG/USD Momentum
The technical structure for silver remains aggressively bullish, though current oscillators suggest we are entering a phase of extreme price discovery.
1. Ascending Channel and Moving Averages
Silver is currently trading within a well-defined Ascending Channel that has guided price action since mid-November. The metal has consistently found support at the 50-day Exponential Moving Average (EMA) , currently situated near $61.50.
The 200-day Simple Moving Average (SMA) , a key barometer for long-term health, is trending lower at $56.80, indicating that while the long-term trend is up, the price has become significantly extended from its historical mean.
2. Relative Strength Index (RSI) & Oscillators
- RSI (14-Day): The Relative Strength Index is currently hovering around 80.3, placing it firmly in the "Overbought" territory. While this suggests the potential for a short-term "cooling off" period or profit-taking, in high-momentum markets, RSI can remain elevated for extended periods during a parabolic run.
- MACD (Moving Average Convergence Divergence): The MACD histogram shows widening green bars, confirming strong bullish momentum. There are no signs of a "bearish divergence" yet, suggesting the path of least resistance remains upward.
3. The Gold-to-Silver Ratio
The Gold-to-Silver ratio has dropped significantly to 65.70, down from over 80 earlier this year. This decline signals that silver is gaining value faster than gold, a classic sign of a risk-on environment in the metals market.
Key Technical Levels to Watch: 17 Dec 2025
For traders in the Dubai Souks and digital exchanges, the following levels are critical for managing risk:
| Support/Resistance | Level (USD/oz) | Technical Significance |
|---|---|---|
| Major Resistance 2 | $68.50 | Upper boundary of the current ascending channel. |
| Immediate Resistance | $66.90 | Short-term Fibonacci extension target. |
| Current Market Price | $66.20 | Trading at All-Time Highs (ATH). |
| Support 1 | $64.60 | Previous ATH; now serves as "support-turned-resistance." |
| Support 2 | $62.15 | Mid-channel support and key psychological floor. |
| Major Support | $60.10 | Confluence of 100-day EMA and structural breakout zone. |
Local Outlook: Investing in Silver in Dubai
Dubai’s status as a global hub for physical metal trading offers unique advantages for silver investors. At Gold Trade, Dubai, we have observed a 40% increase in retail silver demand over the last quarter, particularly in 999 Fine Silver Bars and Silver Coins.
Why Buy Silver in Dubai Today?
- Transparency: Dubai provides one of the most transparent pricing mechanisms globally, tied directly to the London Bullion Market Association (LBMA) rates.
- No VAT on Investment Silver: Under current UAE regulations, investment-grade gold and silver are generally exempt from Value Added Tax (VAT), making it a cost-effective destination for physical acquisition.
- Hedge Against Inflation: With the UAE Dirham pegged to the US Dollar, silver acts as a direct hedge against any erosion in the dollar's purchasing power.
Trading Strategy & Conclusion
As we approach the final weeks of 2025, the outlook for silver is remarkably constructive. However, the overbought RSI readings suggest that new buyers should exercise caution and avoid "chasing the green candle."
- For Short-Term Traders: Watch for a potential pullback to the $64.60 support level. A successful "retest" of this previous high would confirm a solid base for a move toward $70.00.
- For Long-Term Investors: Despite the all-time highs, the structural deficit in the silver market suggests that any correction toward the $60.00 mark should be viewed as a significant buying opportunity.
Gold Trade, Dubai remains your dedicated partner for navigating the complexities of the precious metals market. Our experts are available for personalized consultations to help you diversify your wealth with silver and gold.
Disclaimer: This Silver Technical Analysis Report is for informational purposes only and does not constitute financial advice. Trading XAU/USD involves significant risk, and it is recommended to consult with a professional financial advisor before making any investment decisions. Gold Trade, Dubai is not liable for any losses incurred based on this report.
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