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
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.
