Silver Prices Plummet as Key Support Levels Fall

Silver prices continued their downward trend on Monday, breaking through key support levels and increasing the risk of further declines. The metal's spot price fell below a crucial support zone near its 50-day moving average, which had been reinforced by a Fibonacci retracement level at $62.15.

This breakdown triggered a continuation of the bearish correction, with sellers remaining in control as trading continued near the day's lows. The high of the day at $64.11 was met with resistance near the 50-day moving average, further confirming the potential for bearish momentum.

The 61.8% Fibonacci retracement level had previously been recognized as support, but now becomes a downside target zone at $59.69. This raises concerns that the metal's corrective low of $54.78 from July may fail to hold as support.

A bearish flag pattern was triggered on Monday, suggesting that the larger declining trend structure is reasserting its influence. This could indicate that a bounce to test resistance near the 50-day moving average at $63.85 is unlikely without a sustained advance above this level.