Silver price is trading around $60.30 at press time after giving back a large portion of its earlier advance, but analyst Tavi Costa believes the longer-term setup remains constructive.
Costa described the recent move as a strong run followed by a healthy correction, with silver now approaching a historically important support area.
His long-term chart compares the current structure with previous silver cycles and shows price returning toward a rising trend line that connects the 1980 and 2011 peaks.
Silver Price Returns to an Important Historical Zone
Costa’s monthly logarithmic chart shows silver repeatedly reacting around the same long-term trend line.
Price is currently near $60.30, putting it only slightly above the area marked by Costa as long-term support.
This makes roughly $55-$60 the zone to watch.
If buyers continue defending this region, the recent decline could eventually look like a long-term retest instead of the beginning of a much deeper reversal.
A sustained move below $55 would weaken that interpretation and increase the possibility of another move lower.
Macro Conditions Could Decide Silver’s Next Move
Silver still faces conflicting forces from the broader economy.
High Treasury yields have made interest-bearing assets more attractive, creating competition for precious metals. The U.S. dollar has also remained relatively strong, another factor that can pressure dollar-denominated metals.
Inflation is equally important.
Oil prices are another variable because higher energy costs can feed inflation expectations.
Silver also has an industrial side that gold does not have to the same degree. Demand from solar energy, electronics and other manufacturing uses means economic activity can influence the metal alongside monetary policy.
Read also: Here’s How High Gold and Silver Prices Could Go This Week
Silver Price Levels to Watch
At $60.30, silver is sitting close to its first important support area.
The $59-$60 region is the immediate level buyers need to protect.
Below that, $55-$57 becomes the more important long-term zone. That area lines up closely with the historical structure highlighted by Costa.
On the upside, silver first needs to recover $62-$64.
A move through that area could put $66-$68 back into focus. If momentum strengthens further, $70 becomes the next psychological target.
| Scenario | Silver price levels |
|---|---|
| Bullish | Holds $59-$60 and moves toward $64-$68, potentially $70 |
| Neutral | Consolidates between $57 and $64 |
| Bearish | Loses $57 and tests $55, with deeper downside possible if that fails |
Our Take on the Silver Price Outlook
Costa’s chart gives the current correction a useful longer-term context.
Silver has already fallen significantly from its recent peak and is now approaching an area that has carried historical importance across several decades.
That does not mean $60 must be the bottom.
The cleaner bullish confirmation would be a defense of $55-$60 followed by a recovery through $64 and then $68.
If that happens, the argument that silver has completed a healthy reset becomes much stronger.
If $55 fails, however, the long-term chart would look less convincing and lower targets would need to be considered.
For now, the $55-$60 area is the key battleground.
