Spot silver prices rose Tuesday, recovering from a steep sell-off that pushed them to their lowest level since December 10. Comments from Federal Reserve Chair Jerome Powell and former President Donald Trump helped ease market concerns.
Fed Chair Powell indicated the central bank is not rushing to hike interest rates despite rising oil prices. This removed a key headwind for silver, as traders had feared higher rates. Markets have largely priced out a rate hike this year.
Former President Trump reportedly suggested the U.S. could end hostilities with Iran, boosting risk sentiment. This pushed Treasury yields lower, which often supports silver prices. Technically, the metal’s main trend remains downward, but current gains appear to be a technical bounce.
Silver currently trades below its 50-day moving average of $83.63, which acts as resistance. Buyers last week pushed prices from $61.00 to $74.57. Traders are now watching the $74.63 level; a decisive move above it could trigger a rally towards $83.61 to $83.63. A failure to hold this level could see prices retest the $61.00 to $58.49 support zone.