Silver slides toward $60 as selling pressure intensifies

Silver spot prices fell to $72.34 an ounce, down 3.2% this week, as intensifying selling pressure pushes the metal toward the $60 level for the first time since 2024.

"The rebound from $72 failed to reach $78.60, and the price action remains negative," Muhammad Umair, founder of Gold Predictors, said. "A break below $70 will push the silver price toward $50 to $60."

Silver has consolidated between $70 and $78.60 over the past 10 days, with the bear flag pattern on the 4-hour chart pointing to a breakdown. COMEX silver inventories rose 4% month-to-date, adding to the supply-side pressure, according to exchange data. The metal has given back all of its year-to-date gains, mirroring weakness in gold, which trades near $4,300 an ounce after sliding from a January record above $5,600.

A break below the $70-to-$72 support zone would open the path to $50-to-$60, a level that some analysts view as a long-term buying opportunity. The next catalyst is the US jobs data release, which could strengthen the dollar and Treasury yields if it comes in above consensus, adding further pressure on precious metals.

Bear Flag Breakdown Signals Deeper Losses

The 4-hour chart for spot silver shows a bear flag pattern that formed after the rebound from $72 failed to breach resistance at $78.60. A break below $70 would confirm the pattern and target the $50-to-$60 range, according to technical analysis. The 50-day simple moving average sits above current prices, showing near-term momentum remains negative.

Gold Consolidation Adds to Precious Metals Gloom

Gold prices remain trapped between the 50-day SMA at $4,650 and the 200-day SMA at $4,350, with the 50-day flattening signaling uncertainty. Citi Research on Monday cut its three-month gold price target by $300 to $4,000 per ounce, citing the war in Iran and elevated oil prices as factors keeping inflation expectations high. Goldman Sachs maintained a more bullish $5,400 forecast, though it acknowledged gold's high liquidity makes it a natural source of cash during equity market selloffs.

The US dollar index held near 99.40, while 10-year Treasury yields remained above 4.60%, both levels that precious metals analysts watch as pressure points for gold and silver. A sustained break above those levels would likely keep both metals under pressure.

This article is for informational purposes only and does not constitute investment advice.