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Silver may still be heading much lower

Silver has broken below key support around $58.50, reinforcing a bearish technical setup as momentum weakens and the US dollar remains an important headwind.

Michael J Kramer

Founder, Mott Capital Management

16 Jul 2026, 08:10

Silver breaks key support

Silver has now broken below the key support level around $58.50, reinforcing the bearish technical outlook. Following yesterday's sharp decline, the next major area of support appears to be around $49.50 if selling pressure continues.

The breakdown also strengthens what appears to be a descending triangle, a pattern that is typically considered bearish.

Former support becomes resistance

Unless silver can reclaim the former support area around $58.50 and move back above the 10-day exponential moving average near $59.50, followed by the 20-day moving average around $61, the technical picture continues to favour further downside.

A recovery above those resistance levels could pave the way for a rally towards $67.50. However, momentum remains weak, with the relative strength index (RSI) continuing to suggest that silver is vulnerable to making fresh lows.

Silver, 2025 – present

Silver may still be heading much lower - Former support becomes resistance

Sources: TradingView, Michael J Kramer.

Dollar strength remains a headwind

The US dollar also remains an important factor. Although softer-than-expected US consumer price index (CPI) and producer price index (PPI) data have weighed on the dollar this week, the decline has been relatively modest. If the US Dollar Index resumes its broader uptrend, it would likely create an additional headwind for silver.

Recent price action suggests that easing inflation expectations alone have not been enough to support precious metals, with silver recording its lowest close since December following yesterday's sell-off.

Silver prices reach a critical technical turning point

Silver is testing a key resistance area around its 50-day moving average and the upper boundary of a descending channel, with momentum still fragile. A sustained break above $75.70-$77.40 could improve the recovery case, but failure there would keep the downside focus on support near $70.30.

Silver's recent rally may not last for much longer

Silver has recovered within a rising channel, but the move still looks more like a retracement than the start of a durable new uptrend. If support around $76 gives way, the chart may confirm a bear flag and open the way to a much deeper pullback.

Gold faces risk of a sharp breakdown as support comes under pressure

Gold has struggled to behave like a safe haven as the US dollar, bond yields and oil prices rise. A descending triangle pattern suggests a break below support could expose deeper downside.