Silver rebounded from a five-day low near $56.705 to close the week around $63.73, pushing back above its key VC PMI mean levels. The recovery reopens a path toward resistance near $67-$71, though cooling momentum keeps $61.90-$63.47 in focus as particularly important support.
Silver clears its VC PMI mean levels
Silver futures closed the five-day period near $63.73, recovering sharply from Monday's low of $56.705. The rebound touched a Friday high of approximately $65.48. That move pushed the metal back above the Weekly VC PMI mean at $61.90 and the Daily VC PMI mean near $63.47, shifting the short-term structure toward bullish territory.
As long as silver holds above the $61.45-$61.90 area, the market keeps a constructive mean-reversion structure, anchored by Daily Buy 1 at $61.45 and Daily Buy 2 at $59.41. A correction into that zone could represent an important test of buyer commitment, the analysis notes.
Resistance builds toward $67-$71
On the upside, Daily Sell 1 sits near $65.51, followed by Daily Sell 2 at $67.53. The weekly resistance structure reinforces that zone, with Weekly Sell 1 at $67.08 and Weekly Sell 2 at $70.67. Therefore, $65.50-$67.50 forms the first major supply zone, and a decisive close above $67.53 would expose approximately $70.67-$70.81.
The advance also sits within a broader 90-, 180-, 270- and 360-day cycle framework, where the reversal from $56.705 suggests a short-term cycle low may have formed. The next important cycle window falls in mid-to-late August, when price behavior near $67-$71 should show whether the advance turns into another acceleration phase.
From a Gann Square of 9 perspective, the $61-$64 region acts as an important rotational zone. Sustained acceptance above $64 would strengthen the case for rotation toward $67.50 and $70.80. A rejection followed by a close below $61.45, however, would reopen $59.41 and potentially the weekly $58.31 support.
Momentum cools as fundamentals stay mixed
Silver's fundamentals remain supported by its dual role as a monetary and industrial metal, with investment demand, Federal Reserve policy expectations, dollar movements, real interest rates, geopolitical uncertainty and demand from solar, electronics and electrification among the drivers. A stronger dollar or renewed expectations for restrictive monetary policy, though, could still spark short-term volatility.
The MACD has retreated toward neutral after Friday's advance, making $63.47-$61.90 particularly important support. Above $63.47, the VC PMI outlook favors $65.51, then $67.08/$67.53, then $70.67; below $61.45, downside risk increases toward $59.41 and $58.31.
Source: Investing.com
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