Spot silver prices have dropped below the critical $29.00 per ounce mark, despite a weakening U.S. dollar. According to FXStreet analyst Christian Borjon Valencia, the decline was driven by an increase in U.S. bond yields, which exerted downward pressure on silver.
Valencia notes that silver ended Wednesday’s session 1.2% lower, closing at $28.88 per ounce. The drop occurred as U.S. Treasury yields rose following a 5-year U.S. Treasuries auction, resulting in silver prices failing to extend their previous gains and falling below the significant $29.00 per ounce level.
From a technical standpoint, Valencia observes that silver’s bearish momentum has intensified. The Relative Strength Index (RSI) indicates a bearish trend with substantial room before reaching oversold conditions. Valencia suggests that the path of least resistance for silver appears to be downward, predicting further declines if the current trend continues.
The first support level for silver is the 100-day moving average (DMA) at $28.43 per ounce. Should this level be breached, the next target would be the psychological support at $28.00 per ounce, followed by the recent cycle low of $26.02 per ounce, recorded on May 2.
Conversely, if silver manages to rally above the $29.00 per ounce mark, it could test higher resistance levels. The initial resistance would be the July 22 high of $29.42 per ounce. Breaking this level would set the next target at the July 19 high of $29.83 per ounce, with a potential rise towards the $30.00 per ounce mark if momentum continues.
As of 08:35 GMT, spot silver was trading at $28.84 per ounce. 
