Silver Stumbles: Will $36 Hold or Crack?

Silver prices slid over 1% on June 27, 2025, dropping from a five-day high of $36.83 to $36.16. The dip followed a rebound in U.S. Treasury yields and a slight dollar recovery, pressuring XAG/USD. A bearish engulfing candlestick pattern emerged, hinting at further declines. Yet, a weekly close above $36.00 could solidify this level as support, keeping bullish hopes alive. Will silver hold firm, or is a deeper pullback looming?

The bearish pattern suggests sellers are gaining traction, testing silver’s resilience. If prices hold above $36.00, buyers might push for $36.83, eyeing $37.00 and the yearly high of $37.31. However, a break below $36.50 could trigger a slide to $36.00, with $35.68 and $35.29 as next supports. For example, a jeweler in Chicago might delay bulk purchases, awaiting clarity on price direction.

What Drives the Drop?

Rising yields and a stronger dollar often weigh on silver, a non-yielding asset. Recent market jitters, like April’s tariff-driven volatility, add pressure. If yields keep climbing, silver could face tougher headwinds. Silver’s fate hinges on $36.00. A hold above it fuels bullish bets; a break below risks steeper losses. The coming days will reveal whether buyers or sellers seize control.