Silver Price Forecast: Neckline rejection keeps $60 in sight

The silver price is currently on a downward trend, with the head-and-shoulders pattern still intact. The XAG/USD pair is trading at $63.60, marking a decline of over 1.50%. The Relative Strength Index (RSI) indicates that bearish momentum is still dominant, as it remains below the neutral 50 level. Silver's first support is the $63.00 mark, with further declines potentially exposing the 50-day Simple Moving Average (SMA) at $62.59 and then $62.00.

Should the downward trend continue, prices may reach the $60.00 area, followed by the head-and-shoulders objective level at $55.00. On the other hand, for buyers to invalidate the head-and-shoulders pattern, they must push the silver price past the September 9 peak of $68.33, potentially testing the $70.00 level. Silver is a highly traded precious metal used as a store of value and medium of exchange.

It can serve as a hedge during high-inflation periods, although its popularity is lower than that of gold. Investors can acquire silver through physical purchases, such as coins or bars, or via exchange-traded funds. Silver prices are influenced by various factors, including geopolitical events, interest rates, the US Dollar's strength, investment demand, mining supply, and recycling rates.

Silver is widely utilized in industries like electronics and solar energy due to its high electrical conductivity. As gold prices rise, silver typically follows suit, as both are considered safe-haven assets. The Gold/Silver ratio may help investors determine relative valuations between the two metals.