Spot silver continues to rebound, but we still need to be vigilant about further downside risks in the future
2025-08-04 15:37:01
Spot silver rebounded last Friday (August 1st), closing up 0.87%. Silver prices continued their rebound during the Asian and European trading sessions on Monday (August 4th), currently trading around $37.15 per ounce, up approximately 0.38%. This rebound was boosted by weak US non-farm payroll data and a 2.23% rise in gold prices last Friday. However, compared to gold and the magnitude of this recent decline, silver's rebound has been relatively small and weak, suggesting a potential downward correction in prices.
Silver is currently trading around $37.15, not far from the four-week low of $36.19 hit last Thursday.
From a technical perspective , last week silver fell below the support of the nearly two-month rising channel and the 200MA area on the 4-hour chart, which is seen as a key resistance area for silver bears.
Oscillators on the daily and 4-hour charts remain negative, suggesting that further downside resistance lies ahead for silver prices. Therefore, any subsequent rally is more likely to face stiff resistance around the $37.24 area (200MA on the 4-hour chart).
This is followed by a breakout of ascending channel support in the $37.75 area, which should serve as a pivotal point that, if broken, could trigger short covering and carry silver prices up to $38.00 and, in turn, to the $38.30 to $38.35 area.
On the other hand, the multi-week low near $36.20 appears to be limiting short-term downside, with the $36.00 mark being the target for further decline. Sustained selling above this level would likely continue to drive the market towards bearish dominance, dragging silver prices down to the next support level near $35.50. This downward trend could extend further, potentially challenging the psychological $35.00 mark.
(Spot silver 4-hour chart, source: Yihuitong)
At 15:35 Beijing time, spot silver was trading at $37.18 per ounce.
Silver is currently trading around $37.15, not far from the four-week low of $36.19 hit last Thursday.
From a technical perspective , last week silver fell below the support of the nearly two-month rising channel and the 200MA area on the 4-hour chart, which is seen as a key resistance area for silver bears.
Oscillators on the daily and 4-hour charts remain negative, suggesting that further downside resistance lies ahead for silver prices. Therefore, any subsequent rally is more likely to face stiff resistance around the $37.24 area (200MA on the 4-hour chart).
This is followed by a breakout of ascending channel support in the $37.75 area, which should serve as a pivotal point that, if broken, could trigger short covering and carry silver prices up to $38.00 and, in turn, to the $38.30 to $38.35 area.
On the other hand, the multi-week low near $36.20 appears to be limiting short-term downside, with the $36.00 mark being the target for further decline. Sustained selling above this level would likely continue to drive the market towards bearish dominance, dragging silver prices down to the next support level near $35.50. This downward trend could extend further, potentially challenging the psychological $35.00 mark.
(Spot silver 4-hour chart, source: Yihuitong)
At 15:35 Beijing time, spot silver was trading at $37.18 per ounce.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
