Silver Rally Faces Crucial Payrolls Test After Failed Breakout

Silver prices have retreated after hitting their highest level since July 6 at $62.91, causing concerns about the strength of the rally.

The sudden reversal and break back under the 50-day moving average suggests that the move may have been a bull trap, where traders bought in anticipation of further gains but were left holding onto losses when the price dropped.

The 50-day moving average, along with the July 6 swing top at $63.28, now serves as resistance levels for silver prices.

If the price drops below the long-term 50% level at $60.835 and fails to attract buyers, it could break into the retracement zone between $58.84 and $57.89.