Silver Price Forecast: Head-and-Shoulders risk builds below $67

Silver price struggles to clear a key technical resistance near $67.00, retraces to two-day lows at $65.31, and records a 1.42% loss. The non-yielding metal failed to sustain its early gains amid elevated US bond yields, driven by rising inflationary pressures.

XAG/USD Price Forecast: Technical Outlook

The white metal appears to be forming a head-and-shoulders chart pattern with bearish implications, but the pattern is not yet confirmed. After peaking two weeks ago at $71.12, Silver tumbled to $65.58, before forming another leg-up, which was capped by the 100-day Simple Moving Average (SMA) at $67.27.

Since then, XAG/USD has retreated to current spot levels, while momentum, as depicted by the Relative Strength Index (RSI), has turned bearish, a signal that traders favor further downside.

If XAG/USD dives below $65.00, this clears the path to challenge the September 2 low of $63.32. A breach of the latter confirms the head-and-shoulders formation, so a move towards the $55.00 psychological mark is on the cards.

On the flip side, if the white metal reclaims the 100-day SMA, a move to the $70.00 is likely.

XAG/USD Price Chart – Daily