Silver Price Finds Support Near 3-Month Low

As shown on the XAG/USD chart, the price of silver is currently around $26.75 this week, marking the lowest level since early May.

In our analysis of silver on June 6, we noted:

→ Silver was underperforming gold—a bearish sign;

→ Other bearish indicators included a double top pattern near the $32 per ounce level.

Since the close on June 6, silver prices have dropped by more than 14%, with:

→ A bearish head-and-shoulders pattern forming above the psychological level of $30 per ounce;

→ The price breaking below the median line of an ascending channel (shown in blue);

→ The price establishing a downward channel (shown in purple), with the $29 level acting as resistance (indicated by an arrow).

One of the drivers of this decline has been recession fears in the U.S. economy, as commodity markets typically experience downward trends during recessions.

Could the bearish trend in silver continue?

While further declines can't be ruled out, technical analysis of the XAG/USD chart today suggests that silver is finding support at current levels:

→ Support is likely at the lower boundary of the blue channel;

→ The $26 per ounce level, which previously influenced significant price extremes, could also offer support.

Notably, yesterday's silver price dipped below Monday's low but is recovering today. This inability of the bears to extend the downward momentum suggests their pressure is weakening, and the bulls may be poised to take control.

Read analytical Silver price forecasts for 2024 and beyond.

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