Silver (XAG/USD) found support near the $63.00 level after hitting an over three-week low earlier on Friday, staging a modest intraday recovery and reclaiming the $64.00 mark during the early European session. Despite this bounce, the overall market tone remains bearish, as indicated by the recent breakdown below the 200-period Simple Moving Average (SMA) on the 4-hour chart, which is positioned around $64.71. The decline halted at the 38.2% Fibonacci retracement level of the July-August upswing, near $63.00, which now serves as a key pivot point for traders [1].
Technical indicators reinforce the bearish outlook: the Relative Strength Index (RSI) stands at 37.46, and the Moving Average Convergence Divergence (MACD) is negative at -0.38 on the 4-hour chart, both suggesting that downside momentum remains dominant. Analysts note that any further upward movement could be viewed as a selling opportunity, with the risk that gains may quickly dissipate [1].
Key resistance levels are identified at the 200-period SMA ($64.71), the 38.2% retracement ($64.91), and the 23.6% retracement near $67.27. On the downside, immediate support is at the 50.0% retracement ($62.99), followed by the 61.8% retracement ($61.08). A break below these levels could expose the 78.6% retracement at $58.36, with the cycle low near $54.89 as a more distant bearish target [1].
Market participants are awaiting the release of US consumer inflation figures, which could influence the next directional move for silver. No specific analyst opinions or forward-looking statements beyond the technical outlook and anticipation of the inflation data are provided in the article [1].
CONCLUSION
Silver has staged a modest recovery from recent lows but continues to face bearish technical signals, with traders closely watching upcoming US inflation data for further direction. Key support and resistance levels are clearly defined, and the prevailing sentiment remains cautious with downside risks prevailing.