Silver prices hovered near the $30.55 level on Monday, consolidating losses from last week’s retreat from a one-month high. The metal is grappling with bearish pressure, trading close to its 100-day Simple Moving Average (SMA), a critical technical level that could dictate its near-term trajectory.
From a technical perspective, a decisive break below the 100-day SMA could signal further downside for silver, potentially opening the door to November’s lows near $29.65. Oscillators on the daily chart indicate growing bearish momentum, with additional declines likely targeting the $29.00 region or even the $28.35-$28.00 range in an extended sell-off scenario.
Conversely, any recovery attempt is expected to face strong resistance near the $31.00 mark. Sustained momentum beyond this level could trigger a short-covering rally, with prices eyeing a move toward $31.75 and possibly revisiting the recent high of $32.35 touched last week.
For now, market participants remain cautious, awaiting clearer signals on silver’s direction amid evolving macroeconomic factors, including upcoming Federal Reserve policy announcements and broader commodity market trends. Until then, silver is likely to remain range-bound, navigating between key support and resistance levels.
