Silver prices gained on Wednesday. The rise came as interest rates began to ease. Traders expect a short-term bounce for the metal.
The metal faces resistance at its 50-day Exponential Moving Average. The $80 level also acts as a barrier. A break above $80 could open a path to $90.
Markets likely face sluggish performance despite short-term gains. High interest rates continue to weigh on silver. Silver does not yield returns, making it less attractive when rates climb.
Significant demand exists for silver. Supply, however, remains insufficient. Geopolitical events in the Middle East influence interest rates, affecting silver’s value.
Support for silver lies near the $70 level. A break below this, and its 200-day EMA, could cause a plunge. Silver is known for its volatility.