Silver Drops to $73 as $71 Support Comes Under Test

Silver fell 2.1% to about $73 on Thursday, testing the $71 swing-low support after the dollar strengthened following a hotter April consumer price index print and a sharp drop in the odds of a June Federal Reserve rate cut.

On the daily chart, silver cleared a steep descending trendline on May 7 and retested that line as support on May 8, May 19 and May 20. The current decline marks a fourth test of that area. Holding near $71 would keep the recent reclaim intact and leave a path to retest resistance near $83 and the 0.382 Fibonacci retracement at roughly $89. A break below $71 would expose the longer-term 0.618 Fibonacci level near $69, a zone last seen during the February sell-off toward $63.

Momentum on the daily timeframe mirrors price action. The Relative Strength Index sits around 43 and presses an ascending trendline that has supported pullbacks since late March. A clear bounce from that line would maintain the existing pattern; a break would be the first failure of the trendline in two months.

The four-hour chart points toward further downside. Bollinger Bands on the 4-hour timeframe are widening as price moves toward the $71 floor, with the most recent 4-hour candle closing near $73.16 and the lower band approaching $72. Price fell below the 4-hour middle band on May 27, indicating the consolidation around $76 had ended, and sellers have controlled subsequent candle closes. The 4-hour RSI is near 36; momentum would need to recover above about $76 to ease short-term selling pressure.

Macro factors have weighed on dollar-priced metals. After the April CPI data, market odds for a June Fed rate cut dropped from roughly 48% to below 8%, supporting a firmer dollar and putting downward pressure on silver. Silver’s safe-haven appeal weakened this week as oil prices eased on reports of progress in U.S.-Iran talks, shifting attention back to industrial demand, which has softened alongside weaker manufacturing data.

Traders are focused on two technical reference points: the ascending daily RSI trendline and the $71 horizontal floor. Which one gives way first will likely determine the next directional leg for silver.