On Thursday, the US yields spiked sharply, sending the 10-year yield 10% higher toward the 1.5% level, undermining precious metals.
Silver dropped yesterday, although gold posted a much more significant drop. Today, the situation is reversed = gold is trading flat, while silver is plunging nearly 2% at the time of writing.
This week’s bounce in silver stopped near 24 USD, where previous lows are located. It was an apparent technical pull-back in the ongoing bearish trend. It was sold-off aggressively.
The weekly chart shows the last crucial support for silver – at September 2020 lows near 21.65 USD. Large stop-losses could be hit if that level is taken out to the downside, pushing silver further lower. Additionally, the long-term uptrend would be over.
In that case, we could see a decline toward pre covid highs near 18.50 USD—a drop of circa 15%.
Alternatively, if bulls defend the mentioned support, silver needs to rise above 24 USD for the immediate bearish danger to perish. Short and medium-term trends seem bearish for now. Any rallies are expected to be sold, as we have seen this week already.