Silver Plunges Over 5% as Charts Signal Further Decline Ahead
Silver plunged sharply today, falling just over 5% as chart patterns point to further weakness. The metal is now on track for six losses in nine sessions after a volatile start to the year.
Recent price action and context
The rally that lifted silver by roughly 60% in January reached highs just above $120. That surge gave way to a low near $64 in early February. This week, prices are hovering slightly above $70 on the week.
Silver plunges over 5% in the latest move. The pace of decline has erased much of the recent gains. Momentum now favors the bears for the near term.
Technical picture
The daily chart shows a fresh break under the 100-day moving average. That average sits around $73.19. A sustained close below it would be the first below a key daily moving average since April 2025.
There is also a neckline break in the $73.00–$73.25 area. These technical breaks increase the likelihood that charts signal further decline. Traders will watch the daily close for confirmation.
Key levels and indicators
- January high: just above $120.
- Early February low: near $64.
- Current short-term range: slightly above $70.
- 100-day moving average: approximately $73.19.
- Neckline region: $73.00–$73.25.
Broader market impact
Gold has felt some pressure from silver’s weakness. Gold slipped a little more than 2% to about $4,715 in recent trading. Historically, sharp moves in silver can drag gold lower.
Commodity traders and funds that hold both metals may amplify short-term correlations. That dynamic raises the risk of further downside in precious metals overall.
Outlook and trade considerations
Dip buyers face a difficult entry environment. They must overcome recent momentum and several technical hurdles. If silver closes below the 100-day average, downside risk will likely increase.
Conversely, a quick recovery above the neckline would reduce bearish pressure. For now, expect volatility and a cautious market stance ahead.
