Silver prices have fallen back, having recently soared to near record levels. XAG/USD Sloggish through the early Asian session on Thursday and eroded a part of the previous day’s gains. The metal fell back to the low-to mid-$62 level after the unexpected daily slump. The move seemed to reflect some investors cashing in after an earlier strong rally. Though the larger trend remained up, it now looked as if short-term momentum was slowing; that caused some buyers to recoil.
Why the $62.50 Level Matters
The fall below the price of $62.50 matters because that level was serving as a support line, and one can think of support as a floor that prevents prices from falling. When silver broke that floor, more sellers hit the market. If the downside addition remains as so, then silver could go lower towards $62.00 first. Prices then would be pointing lower, perhaps toward $61.45 or even as low as $60.80. The $60.00 is a crucial area, since lots of traders track sucha level close to a round figure very closely.
When Could Silver Rise Again?
Silver could become positive in an instant if it rises above $64.00 and holds that level. That would indicate that buyers have once again taken charge. If so, silver could attempt to make it up to its previous high of about $64.65. A clean break over $65.00 is likely as an indication to keep on profiting on the long side. At the moment, we are in a waiting zone in the market and traders will be keeping an eye on these important price levels to determine further direction.
