Silver prices face bearish pressure; could test $48 if key support cracks

Silver prices are facing mounting bearish pressure, with market watchers flagging the risk of a sharp decline if key technical support gives way. The white metal has posted notable losses over the past several weeks, signalling a shift in investor sentiment.

According to market analysts tracking the precious metals space, silver appears to be losing ground relative to gold despite both metals operating in a challenging environment. The divergence has been attributed partly to muted flows in silver-backed exchange-traded funds, which have failed to provide the usual support for prices.

A critical juncture looms at the $54.50 support level. Should this threshold break decisively, analysts warn that silver could extend losses towards $48 per ounce, representing a significant retreat from current levels. Such a move would underline the weakness characterizing the white metal's recent performance.

The softer tone in silver contrasts with gold's relative resilience, highlighting a potential shift in how investors are positioning across the precious metals complex. Market participants are closely monitoring ETF inflows as a gauge of underlying demand, with the current lacklustre trend raising questions about silver's near-term trajectory.