Silver prices declined by 0.54% during the North American session on Friday, with XAG/USD trading at $59.66 at the time of reporting. The retreat was attributed to elevated US Treasury yields and a sudden shift in market sentiment following US President Trump's announcement that the ceasefire is 'over' [1]. Technical analysis indicates a bearish outlook for silver, as the market structure continues to form lower highs and lower lows. The Relative Strength Index (RSI) remains below the 50-neutral level and is trending towards oversold territory, reinforcing the downward bias [1].
Key support levels to watch include the July 8 daily low at $57.22 and the year-to-date low of $55.63, set on June 22, after silver fell below the 200-day Simple Moving Average (SMA) in mid-June. A break below these levels could open the path toward the November 13, 2025, high-turned-support at $54.30 [1]. On the upside, a shift to a neutral stance would require buyers to reclaim a downslope resistance trendline in the $62.25-$62.50 area, which could then lead to challenges at the 50-day and 200-day SMAs at $69.94 and $70.31, respectively [1].
The article highlights that silver's price is influenced by factors such as geopolitical instability, US Dollar strength, interest rates, and industrial demand. However, the current market sentiment is bearish due to the combination of high yields and geopolitical uncertainty [1].
CONCLUSION
Silver prices are under pressure, driven by high US Treasury yields and renewed geopolitical uncertainty. The technical outlook remains bearish, with key support levels in focus and limited upside unless buyers reclaim significant resistance areas. Market sentiment is currently negative, suggesting further downside risk in the near term.