Silver Price Forecast: Bearish pressure mounts as $50 comes into focus

Silver (XAG/USD) experiences bearish pressure as $50 price hurdle emerges, driven by concerns over AI investments and a shift towards government bonds. The metal trades around $53.89, marking a second weekly decline, down 55% from its January peak. The decline is attributed to rising energy costs due to the Middle East war, inflation, and central banks raising interest rates.

The Federal Reserve is likely to keep rates unchanged, but may hike again before year-end. Silver remains under the 100-day and 200-day SMAs, signaling a bearish near-term bias. Resistance at $55 and $56.50, followed by the $60 horizontal cap, form the primary barriers. Support is limited to $50, making the metal susceptible to further declines.

Technical indicators, including RSI and MACD, suggest an oversold condition. Silver's price is influenced by factors such as geopolitical events, interest rates, the US Dollar, investment demand, mining supply, and recycling rates. As a yieldless asset, its value increases with lower interest rates and weak USD. Silver also correlates with Gold, with the Gold/Silver ratio serving as a potential indicator of relative valuation.