(Technical Analysis) Silver Retreats After Reaching Two-Month High of $31.43, Now Down by Over 1.50%

Silver prices have pulled back after hitting a two-month peak of $31.43, dropping more than 1.50% to trade at $30.66 at the time of writing. Despite soft US economic data and unchanged US Treasury yields, the precious metal struggled to gain momentum on Monday.

XAG/USD Price Forecast: Technical Outlook

Silver remains upwardly biased, but a significant break below the descending resistance trendline, which has now turned into support, could lead to further downward movement. The Relative Strength Index (RSI) failed to breach the 64 mark, edging lower and suggesting that sellers are beginning to take control.

If XAG/USD closes the day below the $30.66 level, this could trigger a larger decline, with the next target being the key psychological support level of $30.00. Should weakness continue, the following price objectives would be the 100-day moving average (DMA) at $29.47, followed by the 50-DMA at $28.96.

On the flip side, if XAG/USD holds above $31.00, a retest of the recent high from 20 September at $31.44 could be on the cards.

Commodities Price Outlook:

Silver’s retreat after reaching a high signals possible short-term volatility, particularly if technical support levels are breached. A continued downturn could also signal broader risk-off sentiment in the market, impacting other precious metals. Conversely, if silver holds above key levels, it could indicate bullish momentum, encouraging further investment in the metal.