Silver has stabilized near $67.37 after a volatile swing from a $72.05 high down to $65.83, with buyers defending the lower end of the range. Technical levels now point to $68.11–$69.32 as the next resistance zone and $70.95–$74.11 further out, while hawkish Federal Reserve expectations pressure the metal even as structural industrial demand offers longer-term support.
Silver has stabilized near $67.37, consolidating after a sharp reversal that took the metal from a $72.05 high down to $65.83. The decline pushed price back toward the lower value zone of the VC PMI framework, where buyers have begun to stabilize the market.
Support Holds Below the Daily Mean
The Daily VC PMI mean sits at $66.97, the immediate equilibrium level for the market. With silver trading above that mean, the short-term bias has shifted to cautiously bullish.
On corrections, Daily Buy 1 at $65.76 closely coincides with the recent $65.83 low, forming a support cluster. Below that, Daily Buy 2 at $64.62 and Weekly Buy 2 at $63.67 mark deeper extreme zones.
Resistance Bands Ahead
The first upside objective is Daily Sell 1 at $68.11, followed by Daily Sell 2 at $69.32. Above that zone, the Weekly VC PMI mean at $68.69 becomes an important confirmation level.
A sustained breakout would expose Weekly Sell 1 at $70.95, followed by Weekly Sell 2 at $74.11. From a Square of 9 perspective, the $65.75–$66.00 region is a rotational support area, while the $69–$71 band represents the next resistance zone, though confirmation should come from price behavior rather than Square of 9 levels alone.
Fed Expectations Weigh on the Metal
Silver faces competing macro forces. Hawkish Federal Reserve expectations have strengthened yields and pressured precious metals. Following Chair Kevin Warsh's recent comments, markets have substantially increased expectations for another rate increase, while the upcoming U.S. employment report could materially alter those expectations.
At the same time, geopolitical tensions and elevated oil prices are increasing inflation uncertainty. Silver remains supported longer term by its dual monetary and industrial characteristics, including structural demand from solar, EV, electronics and other technology applications.
September Cycle Window Approaches
The market is entering the September cycle window, approaching the historically important September 28 annual cycle date, which raises the odds of increased volatility and price discovery in the weeks ahead.
The immediate structure favors buying corrections while price remains above $66.97. A breakout above $68.11–$69.32 would strengthen the case for a move toward $70.95 and potentially $74.11, while a break below $65.76 would expose $64.62–$63.67.
Source: Investing.com
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