Silver Price Forecast: Head-and-shoulders break puts $60 back in play

Silver (XAG/USD) price fell back below $63.50 on Thursday after erasing gains made on Wednesday, forming a bearish head-and-shoulders chart pattern. The white metal dropped over $3.60, confirming the technical pattern, with the next support levels at $60.00 and a target near $55.00. The decline was triggered by a stronger US Dollar, driven by better-than-expected US Producer Price Index (PPI) data, which boosted bond yields and raised the possibility of a Federal Reserve rate hike.

Silver's value is influenced by factors such as geopolitical events, interest rates, US Dollar strength, investment demand, mining supply, recycling rates, and industrial usage. The precious metal can be bought as physical coins or bars or traded through Exchange Traded Funds. Silver often follows Gold's price movements, and the Gold/Silver ratio provides insight into the relative valuation of the two metals.