Silver Signals Pullback Risks From $40 Barrier

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From a fundamental standpoint, the strength seen in both tech and silver markets in 2025 may be supported by the structural integration of AI and innovation into global economic agendas. As AI and technology increasingly become the backbone of global infrastructure and development, demand is likely to remain strong.

Silver is currently retreating from the $40 psychological zone, the 39.50 high, which aligns with the target of an inverted head and shoulders pattern formed between August 2020 and March 2024.
• Pullback Scenario: In line with weekly overbought momentum as per the RSI indicator, a retracement may target support levels at $37, $36.20, and $35.20 before resuming its broader bullish trend.
• Breakout Scenario: A confirmed close above $40 may open the door to $42, $46, and potentially a move beyond $50.

Written by Razan Hilal, CMT

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