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Silver prices (XAG/USD) declined at the start of the week, contradicting heightened market fears triggered by weekend headlines suggesting financial panic. Despite the drop, the price found temporary support near critical levels, though bulls failed to capitalize on the rebound. Technical analysis indicates that the failure to hold above $23.50 has increased bearish momentum, with further downside risks if the $22.80 support breaks. This development is significant for traders as it highlights the fragility of silver's recent bullish trend. The metal, often seen as a hedge against inflation and economic uncertainty, has lost momentum amid mixed macroeconomic signals. Traders should monitor central bank policies and geopolitical tensions, which could reignite demand for safe-haven assets like silver. For global markets, the continued decline in silver prices may pressure industrial metals and precious metals ETFs. Investors should watch for a potential test of the $22.50 psychological level, which could determine the next phase of the trend. Key technical indicators, including the RSI and MACD, will provide further clarity on whether bears can maintain control.
