Silver rebounded to around USD 85 per ounce in Friday’s trading session after declining for the previous two consecutive sessions. However, on the whole, the metal is still on track to close the week with relatively limited overall movement.

One of the factors that has recently been putting pressure on gold and silver is the strength of the U.S. dollar. In addition, the market is also reacting to changing expectations regarding U.S. monetary policy.

Recent reports suggest that Kevin Warsh could become the next Chair of the U.S. Federal Reserve (Fed). Warsh is known for his relatively hawkish stance on inflation, meaning he supports keeping monetary policy tight if price pressures remain elevated. This has led the market to increasingly expect that interest rates may stay higher for longer.

Meanwhile, oil prices continue to maintain an upward trend due to concerns over instability in the Middle East, raising the risk of a new wave of inflation. In a higher interest rate environment, the U.S. dollar is usually strengthened and bond yields tend to rise. Both of these factors weigh on precious metals, as they increase the appeal of income-generating assets compared with gold and silver.

Silver Technical Analysis: The Head-and-Shoulders Pattern Is Becoming Increasingly Clear

From a technical perspective, the overall picture for silver has not changed significantly. The main scenario remains that the market may be entering a downward corrective phase following the previous period of strong volatility.

At present, silver is moving closer to the neckline area of the Head-and-Shoulders pattern, represented by the red support line on the chart. This is an important technical zone that could serve as the trigger point for this reversal pattern.

If this temporary support is broken clearly, the Head-and-Shoulders pattern would be confirmed, opening the door to a deeper decline in silver prices. In that scenario, the near-term target could move toward the USD 72–74 per ounce area, and further down to the USD 65 per ounce zone, corresponding to the support levels mentioned in previous analyses.

Conclusion

In the short term, silver’s price action is centered around the neckline area — a key level that is critical to the current technical structure. If this zone is broken, the bearish correction scenario could be reinforced and pull prices down toward lower support levels.

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