Silver (XAG/USD) experienced a second consecutive day of declines on Wednesday, trading below the $63.00 level after reversing from the $66.50 area on Tuesday [1]. The downward movement comes as precious metals face headwinds, with market sentiment turning cautious due to the worsening crisis in the Middle East. This geopolitical instability has also contributed to higher oil prices, with Brent Oil consolidating at $90 after a 6% rally over the past three days [1].
Technical analysis indicates that bears are exerting pressure on the $63.30 support area, which previously served as both a trading range floor and resistance [1]. At the time of reporting, XAG/USD was quoted at $63.06. Intra-day momentum indicators, including the 4-hour Relative Strength Index (14) retreating toward the mid-30s and the MACD moving deeper into negative territory, support the bearish outlook [1].
A confirmed break below the $63.30 support could shift focus toward the August 6 low at the $60.90 area, with further downside targets in the mid-$56.00s, referencing late July and early August lows [1]. Conversely, if silver holds above $60.30, bulls may attempt to retest resistance around $67.00, with a key resistance zone between the mid-June highs at $71.55 and the 200-day Simple Moving Average at $71.85 [1].
The article notes that silver prices are influenced by geopolitical instability, interest rates, and the strength of the US Dollar, among other factors [1].
CONCLUSION
Silver prices have come under renewed bearish pressure, breaking below key support levels as geopolitical tensions and cautious market sentiment weigh on precious metals. Technical indicators suggest further downside is possible unless the $60.30 level holds, while any bullish reversal would require a move back above resistance zones. Market participants are closely watching for confirmation of these technical signals.