Silver seems to be in a freefall. For the fourth straight week, prices have been grinding lower—no respite, no bounce—just a relentless decline that has made it the hardest-hit precious metal in this market cycle. Such an extended tumble isn't random; it is a clear reflection of shifting investor sentiment and a major rethink on future interest rate paths by the world's biggest central banks. Higher-for-longer borrowing costs are squeezing the life out of non-yielding assets, and silver—the most volatile player in the group—feels this pain the most.
Rewind to January, and the picture couldn't be more different. Since reaching euphoric all-time highs of around $121–$122 per troy ounce, fueled by speculative frenzy, industrial hype, and rumors of physical shortages, the metal has essentially halved in value. What went up like a rocket is now coming down with the full force of gravity.
Technical analysis isn't offering much comfort to bulls either; the charts still lean bearish. The Relative Strength Index (RSI) is currently hovering just above oversold territory, which means there is plenty of room for more downside before hitting true exhaustion levels—sellers aren't finished yet. The next big test on the horizon is a solid support lurking around $55. Back in October and November, this zone formed a classic double top pattern, i.e., a bearish reversal signal that capped the upside twice before the real breakdown occurred.
The overall recommendation is to sell silver at the current price, targeting $55 within two to three weeks. To manage risk, place a Stop Loss order near the previous low of $64—a level recorded back in February—in case the market turns against us.
This content is for informational purposes only and is not intended to be investing advice.
