Silver Price Forecast: Head-And-Shoulders Break Puts $60 Back In Play

Silver (XAG/USD) price erases Wednesday's gains and forms a bearish head-and-shoulders chart pattern on Thursday after the white metal tanks and breaks a support trendline around $64.00-$64.15, exacerbating the decline below $63.50. At the time of writing, XAG/USD trades at $63.72, down over 5.30%.

XAG/USD Price Forecast: Technical Outlook

Silver shifted gears on Thursday, following a hot US Producer Price Index (PPI) report, which is driving US bond yields higher, underpinning the US Dollar and increasing the chances of a rate hike by the Fed next week. Nevertheless, a softer CPI reading on Friday would leave the meeting 'live,' while higher prices would cement a hawkish case.

Technically speaking, XAG/USD tumbled over $3.60 and cleared the head-and-shoulders neckline. However, a daily close below the latter is required to confirm the bearish chart pattern. In that scenario, the next support levels would be $60.00, followed by the head-and-shoulders target near $55.00.

On the upside, the initial significant resistance for XAG/USD is at $70.00. A strong push could send spot prices up to the 200-day SMA at $73.00, paving the way for buyers to target $75.00.