Silver experienced a decline on Monday due to a moderate rebound of the US Dollar and increased risk appetite amid hopes for a trade agreement between the US and China, and a potential peace deal in Ukraine. The technical analysis shows that Silver’s reversal from the $38.50 resistance area has broken an ascending channel, indicating the end of a bullish cycle. <\/p>\n
Support for Silver has been noted at a 38.2% Fibonacci retracement, around $37.60, suggesting potential further depreciation. Key targets include the August 5 low and the 50% Fibonacci level near $37.30, down to the 61.8% level at $36.05. To counter the bearish trend, a breach above $38.00 is needed to shift focus back to the $38.40-$38.50 range.<\/p>\n
Silver serves as a store of value, influenced by factors like geopolitical instability, interest rates, and US Dollar movements. Industrial demand, especially in electronics and solar energy, also impacts prices. Silver often mirrors Gold’s movements due to their safe-haven status, with the Gold\/Silver ratio providing insights into their relative valuations.<\/p>\n
Given the current market sentiment on August 11, 2025, it appears the bullish run for silver has paused. The breakdown from the ascending channel is a significant technical signal that we are now in a corrective phase. Last week’s US Consumer Price Index data, which came in at 2.9%, is adding strength to the US Dollar and putting pressure on precious metals.<\/p>\n
For the coming weeks, we are looking at bearish strategies. The break of the $37.60 support level suggests that prices are likely to drift toward the next key targets. We see opportunities in establishing short positions or buying put options with strike prices aimed at the $37.30 and $36.05 levels.<\/p>\n
The weakening is also evident when we look at the Gold\/Silver ratio, which has climbed to 85:1 from its late July lows near 82:1. This indicates silver is underperforming gold, a classic sign of reduced investor appetite for the more volatile metal. Recent reports from major electronics manufacturers revising their Q4 forecasts downward also suggest a potential softening in industrial demand.<\/p>\n
We must, however, set our risk parameters carefully. A sustained move back above the $38.00 mark would challenge this bearish view and could trigger a short squeeze. We saw a similar pattern in the summer of 2024, where a brief dip was followed by a sharp rally, so we will use that as our primary stop-loss indicator.<\/p>\n
The geopolitical climate, with hopes rising from the Geneva peace talks, is currently reducing the demand for safe-haven assets. We remember how sensitive silver was to Federal Reserve commentary throughout 2023, and any further hawkish signals will likely accelerate this downward trend. Therefore, our bias remains to the downside unless the technical picture changes dramatically.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver drops as US Dollar rebounds; key Fibonacci levels suggest further downside unless $38 resistance breaks.<\/p>\n","protected":false},"author":62,"featured_media":16982,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-28760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/28760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=28760"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/28760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16982"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=28760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=28760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=28760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}