Silver Price Analysis: XAG/USD hangs near $25.00 mark, remains vulnerable

(July 22) Silver witnessed fresh selling on Thursday and eroded a part of the overnight recovery gains. The set-up remains tilted in favour of bearish traders and supports prospects for further losses. A sustained move back above the $26.00 mark is needed to negate the near-term bearish bias.

Silver struggled to capitalize on the previous day's goodish recovery move from the lowest level since April 13, instead met with some supply on Thursday. The commodity remained depressed through the mid-European session and was last seen hovering near daily lows, around the key $25.00 psychological mark.

Given this week's sustained break below the $25.70-65 confluence support, the emergence of fresh selling supports prospects for an extension of the one-week-old downtrend. The mentioned region comprised the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up, which should now act as a pivotal point for short-term traders.

FXStreet