Silver Price Tumbles Below Key Support Trendline

The price of Silver has taken a significant hit after breaking through a crucial support trendline around $64.00-$64.15, resulting in a bearish head-and-shoulders chart pattern on the daily XAG/USD chart.

This move comes as a result of the hot US PPI report that drove up US bond yields and strengthened the US Dollar, increasing the likelihood of a rate hike by the Fed next week. However, a softer CPI reading on Friday could leave the meeting 'live,' while higher prices would solidify a hawkish case.

The head-and-shoulders neckline has been cleared, but a daily close below it is required to confirm the bearish chart pattern. If this happens, the next support levels would be $60.00, followed by the head-and-shoulders target near $55.00.