Silver Price Update

Silver might be testing support around its four-month low of $61.01.

The 14-day Relative Strength Index is currently at 47.16, indicating a lack of strong directional confidence.

XAG/USD is hovering near short-term resistance at the 9-day EMA, listed at $74.75.

On Monday, silver prices (XAG/USD) declined after a two-day rise, trading around $74.30 per troy ounce during European hours. A look at the daily chart points to a descending channel pattern, hinting at a prolonged bearish trend.

The short-term outlook for the white metal remains negative as it stays below both the 9-period and 50-period exponential moving averages (EMAs). This situation keeps the recent rebound in check under a declining trend structure.

With the 14-day Relative Strength Index just below the neutral mark at 47.16, it’s clear there’s not much confidence in any directional movement. Yet, this doesn’t really counter the bearish sentiment reflected in the price action beneath those major averages.

If silver prices continue to decline, they may approach the four-month low of $61.01 set on March 23. A further drop would put significant pressure on prices, potentially testing the lower boundary of the descending channel, estimated at around $47.10.

The price of silver is currently close to an immediate barrier at the 9-day EMA of $74.75, followed by the 50-day EMA at $76.79 and the upper limit of the channel around $78.90. A decisive break above this resistance zone could signal a bullish shift, potentially supporting the XAG/USD pair toward the three-month high of $96.62 reached on March 2. If that occurs, the all-time peak of $121.66 from January 29 may be in sight.