Commodities News

Silver Price Drops for Second Consecutive Day Amid Bearish Sentiment and Technical Indicators

Silver Price Drops for Second Consecutive Day Amid Bearish Sentiment and Technical Indicators

The price of silver (XAG/USD) remains under pressure as it extends its decline into the European session on Tuesday. Currently trading around the intraday low of $23.45, the silver market is witnessing a second consecutive day of losses. This downward movement comes as the metal fails to break above its 50-day simple moving average (SMA) and remains below a descending resistance line that has been in place for a week.

Technical Indicators Signal Bearish Momentum for Silver

Technical indicators are further weighing on the silver market, suggesting a bearish sentiment among traders. The Moving Average Convergence Divergence (MACD) indicator is on the verge of a bearish cross, signaling a potential shift in momentum. This bearish crossover occurs when the MACD line crosses below the signal line, indicating a possible downtrend in silver prices. Traders and investors closely monitor these technical indicators to make informed decisions in the market.

Factors Contributing to the Decline in Silver Price

Several factors are influencing the downward movement in the price of silver. Firstly, the inability to breach the 50-day SMA has discouraged buyers and given sellers an upper hand. The SMA is widely followed by market participants as a key level to gauge the market trend and potential price reversals. The failure to surpass this level has triggered selling pressure.

Secondly, the descending resistance line adds further resistance to the silver market. Traders and technical analysts often pay attention to trendlines to identify potential areas of support or resistance. The presence of a one-week-old descending resistance line indicates a barrier for silver bulls, contributing to the bearish sentiment.

Furthermore, the overall market sentiment and economic factors play a role in the decline of silver prices. Factors such as global economic uncertainty, inflation concerns, and fluctuations in the value of major currencies can influence investor demand for silver as a safe-haven asset. A risk-off sentiment in the market and a preference for other investment options could also impact the price of silver.

Outlook and Key Levels to Watch

As the bearish sentiment continues to dominate the silver market, traders will closely monitor key levels for potential price movements. On the downside, immediate support is seen near the recent intraday low of $23.45. A break below this level could open the door for further declines, with the next support area likely around $23.00.

Conversely, if silver manages to overcome the descending resistance line and break above the 50-day SMA, it could indicate a potential reversal in the trend. In such a scenario, the price may aim for resistance levels around $24.00 and $24.50.

It is important to note that the silver market is influenced by a variety of factors, including macroeconomic trends, industrial demand, and investor sentiment. Traders and investors should exercise caution and conduct thorough analysis before making any trading decisions.


The silver market is currently experiencing a downward trend, with the price of silver (XAG/USD) declining for the second consecutive day. Technical indicators, such as the potential bearish cross on the MACD indicator, add to the bearish sentiment. The failure to break above the 50-day SMA and the presence of a descending resistance line further contribute to the downward pressure. Traders will closely monitor key support and resistance levels for potential price movements in the silver market. As always, it is important for market participants to stay informed and exercise caution in their trading decisions.

Andrew Johnson is a seasoned journalist with a keen interest in the commodity market. He is a regular contributor to, where he covers the latest news, trends, and analysis related to the commodity industry. With years of experience under his belt, Andrew has established himself as a reliable source of information on the global commodity market.