Article details
Silver prices (XAG/USD) fell below $81.50 on Friday, marking a significant technical breakdown after reaching a one-month high near $89.40 earlier this week. The decline follows a two-day selling trend, with traders focusing on the 38.2% Fibonacci retracement level as a critical support zone. This move suggests weakening momentum for the precious metal, which had previously rebounded from key resistance levels. The breakdown below $81.50 could trigger further downward pressure, testing the next Fibonacci level at $79.60 and potentially challenging the $75.00 psychological threshold.
For traders, the Fibonacci breakdown is a key technical signal that may influence short-term positioning. Silver's volatility has been amplified by mixed macroeconomic data and shifting investor sentiment toward safe-haven assets. The $81.50 level now acts as a dynamic resistance, and a sustained close below this level could signal a bearish shift in the near-term trend. Market participants are closely monitoring the 38.2% Fibonacci level as a potential entry point for short positions or a target for stop-loss adjustments.
Looking ahead, the focus remains on whether silver can stabilize above $81.50 to regain bullish momentum or if the breakdown will accelerate a decline toward $75.00. Broader factors like central bank policy decisions and industrial demand for silver in the Gulf region could also impact the metal's trajectory. Traders should watch for confirmation signals, such as a rejection at $79.60 or a rebound above $85.00, to gauge the next directional move.
