PRECIOUS METALS | Silver Faces Challenges Despite Bullish Technical Patterns

Silver has seen a sharp reversal following a strong rally, yet it continues to exhibit bullish technical patterns, including a cup-and-handle formation and hidden RSI bullish divergence. According to NS3.AI, macroeconomic factors such as a robust US dollar, an increasing gold-silver ratio, and diminishing backwardation in futures markets present obstacles to further silver gains. Institutional positioning indicates moderate re-engagement, suggesting that if silver can sustain a breakout above the $96-$99 range, it could potentially reach $100 and beyond. However, significant downside risks persist at key support levels.