Silver prices found buyers on Tuesday as interest rates continued to dip. The metal initially fell early in the trading session. It later turned around, showing signs of strength.
Silver currently trades near the $70 level. This area has acted as a price magnet. The metal sits just above its 200-day Exponential Moving Average (EMA).
Traders are monitoring the 10-year U.S. Treasury yield. A continued fall in yields could help silver rally, if historical correlations hold. If the market gains with lower rates, the 50-day EMA at $74.60 could become a target.
A break below the 200-day EMA could send silver to the $63.50 level. This marks the bottom of last week’s price gap. The $60 level is considered the market’s floor.
The Middle East situation also draws market attention. Falling bond rates, driven by hopes for stability, could give silver a boost. Longer-term demand for silver remains strong.