Spot Silver Falls Below $28 as Downward Trend Continues

In Wednesday’s Asian trading, spot silver extended its downward movement, dropping below the key $28.00 per ounce barrier after a significant decline the day before. Spot silver closed Tuesday's session 1.77% lower at $28.03 per ounce, and by mid-Wednesday, prices had fallen further to $27.90 per ounce.

FXStreet analyst Christian Borjon Valencia highlighted that this break below $28.00/oz opens the possibility for silver to drop towards $27.71/oz, with potential to decline even further, aiming for the 200-day moving average at $26.59/oz.

Valencia pointed out that the daily chart for silver shows momentum favoring a bearish trend, as indicated by the Relative Strength Index (RSI), with the metal trading below both the 50-day and 100-day moving averages.

For the bearish trend to strengthen, silver would need to drop below the recent low of $27.71/oz. If the price weakens further, it could reach the August 14 low of $27.18/oz, followed by the 200-day moving average at $26.59/oz.

On the flip side, Valencia noted that for silver to regain upward momentum, buyers would need to push the price back above the 100-day moving average at $29.14/oz.