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Silver price (XAG/USD) rebounded to near $65.00 during the European trading session on Wednesday after finding bids at a two-month low of $63.45 earlier in the day. The price action suggests temporary support near $63.50, but technical indicators and broader market sentiment remain bearish. Analysts highlight that the 200-day moving average and key Fibonacci retracement levels below $63.00 could act as critical resistance-turned-support zones. However, the overall trend remains downward, with the 2024 bearish pattern still intact due to weak industrial demand and macroeconomic pressures.
For traders, the bounce near $63.50 offers a potential entry point for short-term reversals, but the broader bearish bias suggests caution. Silver’s correlation with equities and industrial metals means macroeconomic data, particularly from the US and Europe, will influence its trajectory. The upcoming US employment report and European Central Bank policy decisions could trigger volatility.
MENA investors should monitor the USD’s strength against the euro and yuan, as currency movements impact silver’s affordability. The 63.50 level will be a key watchpoint; a sustained break below this could accelerate the decline toward $60.00. Technical traders may also track volume patterns to confirm the validity of the support level.
