Silver prices faced continued pressure on Thursday. Rising interest rates in the United States weighed on the non-yielding asset. Traders are closely watching interest rate markets.
US interest rates rose again early in Thursday’s session. This trend generally impacts silver negatively. The 50-day Exponential Moving Average (EMA) also provided technical resistance.
Silver remains within a consolidation range. This range spans between $70 at the bottom and $90 at the top. The $80 level is considered fair value.
Silver struggles while interest rates remain strong. This occurs despite high demand for limited supply. Supply shortages have been a long-standing issue, but the market’s current focus is on interest rates.
Interest rate markets remain the primary driver for silver prices. A shift to supply concerns could emerge after a resolution in the Middle East. Traders will watch $70 and the 200-day EMA for support if prices fall further.