Silver Prices Plunge as Market Momentum Fades
Spot silver prices plunged by 2.5% on Thursday, nearing the $31.00 per ounce mark. FXStreet analyst Christian Borjon Valencia analyzed the technical outlook for silver, noting the sharp decline despite falling US Treasury yields.
On Thursday, spot silver closed down 2.51% at $31.15 per ounce, while the yield on the 10-year U.S. Treasury note fell nearly 7 basis points to 4.548%.
Valencia highlighted that silver's bullish momentum appears to be fading, as indicated by the Relative Strength Index (RSI), which is trending towards lower levels, signaling increased selling pressure. The formation of a "twilight star" pattern suggests potential further declines in silver prices.
Should silver drop below $31.00 per ounce, Valencia predicts further declines, with the next support level at the recent cycle low of $30.05 per ounce on May 24th, followed by the April 12th high of $29.79 per ounce. If these levels are breached, the next bearish target is the psychological level of $29.00 per ounce.
Conversely, if buyers manage to keep silver prices above $31.00 per ounce, it could lead to a consolidation phase within the $31.00-32.00 per ounce range.
