Silver capped at $64.00 as bearish bias persists
Silver failed to sustain gains above $64.00. The metal remains under pressure ahead of US inflation data.
Silver prices stalled near $64.00 on Friday. The metal touched a three-week low near $63.00 earlier in the session. This level aligns with the 38.2% Fibonacci retracement of the July-August upswing. Traders are waiting for US consumer inflation figures to determine the next move.
The near-term technical bias remains bearish. Prices broke below the 200-period Simple Moving Average around $64.71 on the four-hour chart. The Relative Strength Index stands at 37.46. The Moving Average Convergence Divergence shows a negative reading of -0.38. These indicators suggest downside momentum is still dominant.
Technical barriers limit upside
Initial resistance sits at the 200-period SMA near $64.71. The next barrier is the 38.2% retracement level at $64.91. Further up, the 23.6% retracement level is located near $67.27. Analysts view the current recovery as a potential selling opportunity. The bounce from oversold territory may lack the strength to break through these levels.
Support levels define risk
Immediate support is located at the 50.0% retracement level at $62.99. A break below this point targets the 61.8% retracement at $61.08. A deeper decline would expose the 78.6% retracement at $58.36. The cycle low area near $54.89 serves as a distant bearish objective. The market structure favors sellers unless new data shifts sentiment.
Market drivers and context
Silver is priced in US dollars. A strong dollar typically pressures silver prices. Industrial demand in electronics and solar energy also influences the metal. Gold and silver prices often move together. The upcoming CPI report is the key catalyst for the next directional move. Data from GN auto markets/commodities: silver prices confirms the current cautious stance.
