Silver slips to $73 as $71 support faces test

Silver (XAG/USD) fell 2.1% to about $73 on Thursday, approaching the $71 swing low as the daily Relative Strength Index (RSI) presses an ascending trendline that has guided momentum since late March.

On the daily chart, silver broke above a steep descending trendline on May 7 and retested that line as support on May 8, 19 and 20. The $71 area now combines the swing low and the trendline retest and sits above the long-term 0.618 Fibonacci retracement near $69.

If buyers defend $71, the next resistance sits near $83, with the 0.382 Fibonacci retracement around $89 as a further upside reference. A close below $71 would leave the 0.618 retracement at about $69 as the next notable level; that zone was visible during the February drop toward $63.

Momentum on the daily timeframe shows the RSI around 43 and touching the ascending trendline. A bounce from that line would keep the recent upward pattern in place, while a break would mark the first failure of the trendline since late March.

The 4-hour chart points down. Bollinger Bands have widened as price moved toward $71. The latest 4-hour candle closed near $73.16, with the lower band close to $72. Price fell below the 4-hour middle band on May 27, and the 4-hour RSI sits near 36. Short-term momentum would need a sustained move above $76 to return to neutral.

Macro factors have affected flows. Market-implied odds of a June Federal Reserve rate cut fell from about 48% to under 8% after a hotter-than-expected April CPI print. The dollar strengthened and pressure on dollar-priced metals increased. Oil prices eased amid U.S.-Iran talks, and recent manufacturing data showed softer activity.

Market participants are watching whether the daily RSI trendline or the $71 horizontal level breaks first; a break of either line would change near-term technical control.