Key Moments
- Silver continued to attract buyers on Monday morning whenever prices pulled back.
- The $70 level has been acting as a key support area and potential price floor for the market.
- A sustained break below $70 could open the way toward $60, despite an ongoing shortage of silver.
Technical Landscape for Silver
The silver market started Monday on a firm footing, with buyers repeatedly stepping in on dips.
Recent trading has highlighted a strong bid tone, as each retracement has drawn renewed demand.
On the current chart setup, the most prominent level is $70. This price area has been providing
significant support and has so far been difficult to breach on the downside, at least over the
near term. Its resilience suggests that $70 may be forming a solid floor for the market, given
how consistently it has held to this point.
| Key Price Levels | Market Implication |
|---|---|
| $70 | Acting as major support and potential floor while price remains above this zone |
| $60 | Becomes a potential downside target if $70 support is decisively broken |
Risk of Breakdown and Volatility Considerations
If the market were to lose the $70 handle decisively, the downside could accelerate, with
a move toward $60 seen as a realistic scenario and potentially unfolding quickly. That said,
the broader backdrop remains influenced by what is described as a substantial shortage of
silver, which market participants continue to regard as a key factor.
Given this environment, price action is likely to remain choppy and unpredictable. Despite
the noise and erratic swings, the broader directional bias is still viewed as skewed to the
upside. Within this context, short-term pullbacks are being regarded as possible entry points
for buyers, although the scale of volatility in silver makes trading conditions particularly
hazardous.
#XAGUSD | Update
Silver remains in short-term consolidation, with lows gradually lifting.Today's key focus: Support near $73, watch gap fill at 72.9-72.8.
Only attempt bullish bias if silver stabilizes above 73.
Otherwise, dragged by gold's pullback and fading safe-haven… pic.twitter.com/aYV13kYjMu
— Amelia Pavlenko (@AmeliaCFA_) January 5, 2026
Sideways Consolidation Around $70
From a technical perspective, one constructive outcome for the market would be either a
deeper, controlled pullback or an extended period of sideways consolidation, similar to the
current pattern where price action grinds within a range. This type of behavior may help the
market adjust to the idea that $70 per ounce could become a more standard or accepted
reference level.
If that normalization process unfolds, it may require time. While prices hold above $70,
the overall outlook is seen as largely unchanged, even in the face of sharp intraday swings.
Recent sessions have included several very aggressive moves, yet silver prices remain anchored
around this key level, which is interpreted as a constructive signal for the bull case.
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