Silver fails at previous highs 


As stocks rose, precious metals were pummeled and both gold and silver turned lower during the US session on Wednesday. Silver was down 1.5%, trading near 17.95 USD at the time of writing.

There appears to be a very strong resistance near 18.32 USD, where previous cycle highs are located. Silver hit this barrier today, only to be sold-off steeply. What is more negative is the fact that the price failed to hold another support near the 18 USD and fell below this zone as well.

As long as the metal trades below 18 USD. the short-term outlook seems bearish. 

The short-term support could be found and the uptrend line near 17.67 USD and if silver drops below this level as well, we could see a larger decline toward 17.20 USD or possibly to June's lows of 17 USD.

Precious metals seem to be acting as safe havens and if sentiment improves notably, we could see a bigger decline, especially for gold. The greenback refuses to drop more significantly, which might be slightly bearish for metals as well. 
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