Silver prices experienced a significant retreat, dropping approximately 0.76% on Friday and closing the week with losses exceeding 6% as US Treasury yields edged higher, which limited the depreciation of the US Dollar despite a soft US jobs report [1]. At the time of reporting, XAG/USD was trading at $60.50 [1].
Technical analysis indicates that silver has fallen below the confluence of the 50- and 100-day Simple Moving Averages (SMAs) at $64.06-$64.74, and is now poised to test the $60.00 support level in the near term [1]. The bearish momentum is reinforced by the Relative Strength Index (RSI) remaining below its 50-neutral level and approaching oversold territory, with price action confirming a series of lower highs and lower lows [1].
If the $60.00 support is breached, the next potential downside targets are the August 3 low of $56.57 and the year-to-date low of $54.77 [1]. For a bullish reversal, buyers would need to push silver back above the 50- and 100-day SMAs and reclaim the $65.00 level, but the overall bearish structure would only be negated if the August 28 swing high of $71.12 is surpassed [1].
The article also notes that silver prices are influenced by factors such as US Dollar movements, Treasury yields, and industrial demand, but the current market action is dominated by bearish sentiment and technical breakdowns [1].
CONCLUSION
Silver faced a sharp weekly decline of over 6%, with technical indicators pointing to continued bearish momentum and the $60.00 level under threat. Unless buyers reclaim key moving averages and previous highs, the market outlook remains negative, with further downside possible if support levels fail.