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Silver (XAG/USD) has rebounded from a nearly two-week low of $78.35 reached during the Asian session on Monday, pushing back above the $81.00 psychological level in the last hour. The recovery follows a sharp decline driven by weak industrial demand and profit-taking after a brief rally. However, technical indicators suggest a bearish setup, with key support at $78.35 and resistance at $82.50, raising concerns about sustained upside momentum. This price action is critical for commodity traders and hedgers, as the $81.00 level acts as a short-term pivot. A failure to hold above this threshold could trigger further declines toward $75.00, while a break above $82.50 might attract technical buyers. The broader metals market remains under pressure from the strong US dollar and inflation concerns, which could amplify volatility. For Gulf investors, the move in silver prices impacts local mining and manufacturing sectors. The bearish technical setup suggests caution, with a focus on key levels. Traders should monitor the US Federal Reserve’s policy signals and global industrial demand data for potential catalysts. A breakdown below $78.35 could signal a deeper correction, while a sustained rebound above $83.00 might indicate a near-term bottom.
