Silver prices (XAG/USD) advanced by approximately 0.39% on Friday, closing at $64.70 after rebounding from daily lows of $63.51. The upward movement was limited by rising US yields, despite US economic data coming in softer than expected [1].
From a technical perspective, silver remains in a downward trend, although there are signs of bottoming near the $54.70 area, which is close to the yearly low of $54.77. The short-term momentum is bullish, as indicated by the Relative Strength Index (RSI), but the overall market structure remains bearish [1].
Key resistance levels for a bullish continuation include the 100-day Simple Moving Average (SMA) at $68.76, followed by the 200-day SMA at $71.64 and the $72.00 mark. On the downside, if silver falls below the July 6 high of $63.28, the next support is at the 50-day SMA of $61.35, with further support at the August 3 low of $56.57 and the yearly low of $54.77 [1].
The article also notes that silver prices are influenced by factors such as US dollar strength, interest rates, and industrial demand, particularly from the US, China, and India. However, the current price action is primarily attributed to the interplay between softer US data and rising yields [1].
CONCLUSION
Silver's modest price gain was capped by rising US yields, keeping the overall market structure bearish despite short-term bullish momentum. Key technical levels will determine the next move, with resistance at $68.76 and support at $61.35. Market participants remain cautious as silver reacts to macroeconomic factors and technical signals.