Silver fell for a second straight day, trading around $56.80 per troy ounce on Thursday after breaking below key support near $58.50. Technical signals point lower, and the US dollar remains a headwind.
Silver extended its slide on Thursday, trading around $56.80 per troy ounce during European hours in a second consecutive day of losses. The metal has broken below the key support level around $58.50, reinforcing a bearish technical picture.
The chart favours sellers
Price is holding below both the nine-day and 50-day Exponential Moving Averages, with the 14-day Relative Strength Index at 35, hovering just above oversold territory and hinting at weak but not extreme selling momentum. According to FXStreet, the spot price remains slightly below the upper boundary of a descending channel, with sellers stepping in where expected and preventing a breakout.
The breakdown below $58.50 also strengthens what CMC Markets' Michael J Kramer says appears to be a descending triangle, a pattern typically considered bearish.
Where support sits next
The pair may test primary support at the seven-month low of $55.63, recorded on June 24. Further declines would drag it toward the lower boundary of the descending channel around $45.50, according to FXStreet. Kramer points instead to the next major support around $49.50 if selling pressure continues.
A recovery would need to clear resistance first. FXStreet places an immediate barrier at $58.50, followed by the nine-day EMA at $58.68, with a sustained break opening the way to the 50-day EMA at $65.93.
Dollar strength stays a headwind
The US dollar remains an important factor. Although softer-than-expected US consumer price index and producer price index data weighed on the dollar this week, the decline has been relatively modest, and a resumption of its broader uptrend would likely add pressure. Silver recorded its lowest close since December following the prior session's sell-off.
Sources: FXStreet, CMC Markets
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