Silver prices (XAG/USD) rose on Thursday, trading at $73.36 per troy ounce, which marks a 2.83% increase from $71.34 on Wednesday and a 3.20% gain since the beginning of the year, according to FXStreet data [1]. The Gold/Silver ratio decreased to 62.95 from 63.70 the previous day, indicating a relative strengthening of silver compared to gold [1].
However, OCBC strategists Sim Moh Siong and Christopher Wong report that silver has extended its pullback toward $71/oz after a failed attempt to break above $80 in mid-April, with higher Brent crude prices, hawkish rate repricing, and a firmer US Dollar weighing on non-yielding metals like silver [2]. Technical analysis from OCBC highlights a bearish momentum, with a rising wedge pattern and immediate support levels at $70 and $63; a break below these could trigger a deeper decline toward $50 [2].
OCBC notes that silver's recent weakness reflects its industrial demand sensitivity, especially as markets remain cautious amid growth risks and uncertainty in photovoltaic (PV) related demand [2]. Despite the bearish technical outlook, OCBC acknowledges that dips may find some support from the broader deficit narrative and physical investment demand [2].
Resistance levels are identified at $75 (21 DMA) and $78/$80 (50, 100 DMAs), while the daily momentum has turned bearish and the RSI is near oversold conditions, suggesting fragile near-term momentum [2].
CONCLUSION
Silver has experienced a notable price increase, but technical and macroeconomic factors highlighted by OCBC suggest growing downside risks. While physical demand and supply deficits may offer some support, the overall market sentiment has turned cautious, with key support levels in focus for potential further declines.