Silver prices (XAG/USD) are on the decline Wednesday, retreating from a daily high of $58.18 to trade at $57.87 per troy ounce, down 0.20%. The drop comes as the US Dollar gains strength amid rising US Treasury yields, putting pressure on the precious metal.
The technical outlook for silver remains bearish, with prices falling below the $60.00 mark. After a brief rebound over the past two days, the failed attempt to reach higher highs suggests that buyers are losing momentum, while sellers are taking control.
From a momentum perspective, the Relative Strength Index (RSI) is bearish but flat, indicating neither buyers nor sellers are firmly in charge. For a bearish continuation, silver must break below the October 20 low of $56.38, potentially exposing the $55.00 and $50.00 levels. Conversely, a bullish reversal would require silver to surge above $60.00, targeting resistance levels at $61.01, $62.56, and $63.51.
Silver's price movements are influenced by various factors, including its safe-haven status, industrial demand, and the behavior of the US Dollar. As a yieldless asset, silver tends to rise with lower interest rates and falls when the Dollar strengthens.