Silver Price Forecast: Bears crowd $60 after six-percent weekly rout

Silver prices plummeted on Friday, slipping around 0.76% as US Treasury yields rose, alongside a depreciation of the US Dollar amid a weak US jobs report. At the time of writing, XAG/USD was trading at $60.50. The metal concluded the week with losses exceeding 6%, below the 50- and 100-day Simple Moving Averages (SMAs) of $64.06-$64.74, and on track to test the $60.00 level soon.

Bearish sentiment intensifies as the Relative Strength Index (RSI) stays below its 50-neutral level, indicating an oversold condition. Price action also aligns with a series of lower highs and lower lows, suggesting the dominance of sellers. The first support for XAG/USD is $60.00, and if it breaks, a potential drop to the August 3 low of $56.57 could follow.

A clear break in the opposite direction could expose the year-to-date low of $54.77. For a bullish reversal, Silver needs to surpass both the 50- and 100-day SMAs, reaching $65.00. Despite this being a substantial recovery, the bearish outlook persists unless the bull breaks the August 28 swing high of $71.12, the most recent cycle high.

Silver is a popular investment among traders due to its historical use as a store of value and medium of exchange. While less favored than Gold, Silver may serve as a portfolio diversifier with intrinsic value or as a hedge during high-inflation periods. Investors can acquire physical Silver, such as coins or bars, or trade it via Exchange Traded Funds that track its price on global markets.

Silver's price fluctuations stem from various factors, including geopolitical tensions, recession fears, lower interest rates, the US Dollar's performance, investment demand, mining supply, and recycling rates. Applications in industries like electronics or solar energy, driven by its high electric conductivity, can also impact prices.

Silver's price often mirrors Gold's movements due to their status as safe-haven assets. The Gold/Silver ratio, indicating the number of Silver ounces required to match one ounce of Gold, may suggest undervaluation or overvaluation of one metal relative to the other. Analysts, editors, and trading instructors with extensive experience in various financial markets.