Broader market forces are adding weight to silver’s downside risk. A stronger U.S. dollar, poised for a fourth straight weekly gain, is curbing appetite for dollar-denominated metals. Meanwhile, improving sentiment tied to the U.S.-China trade truce is steering investors away from traditional safe-haven assets like silver and gold.
While some inflation data has cooled, suggesting the potential for Federal Reserve rate cuts later this year, that supportive tailwind for silver remains secondary for now. Risk appetite and dollar strength continue to dominate trader attention.
Market Closing Reaction Will Be Key
The tone into Friday’s close remains critical. If traders fail to reclaim the 50-day average at $32.82, it may confirm a near-term top and reinforce the bearish setup. Conversely, a late-session recovery could soften downside pressure, though broader technical and macro signals currently favor sellers.
Silver Outlook: Downside Bias Below $32.19
Silver’s technical breakdown below the Fibonacci pivot and continued failure at the 50-day average suggests further downside in the short term. If the market doesn’t reclaim $32.82 soon, bears could target the $31.45-$31.31 support zone next. Unless sentiment turns sharply or the dollar pulls back, silver appears vulnerable heading into next week.
