Despite the sharp fall since last week, silver is still hanging in there in July trading. On the month itself, the precious metal is now down by 0.3% after erasing its monthly gains in the last five trading days. Price is now currently trading around $29.05, down 0.4% on the day. Still, buyers are not completely down for the count just yet.
Silver (XAG/USD) daily chart
The low today hit $28.67 and that calls into question the June lows at the $28.57-65 region. For now, that is still largely holding but a break below that will be a massive blow to the upside momentum since March.
We’ve already cut back on half of the gains since the surge higher in May and a break below the supportive region above will draw more interest from other key support levels.
The 61.8 Fib retracement level at $28.50 is one to watch, alongside the 100-day moving average (red line) at $28.35 currently.
A technical break below the latter especially will give sellers more momentum to drive a deeper correction in silver next.
As things stand, commodity metals haven’t been enjoying a good month from a technical perspective. Copper is also one that is breaking down further ahead of what is typically its worst seasonal performance in August.