Silver prices fell on Thursday, threatening to break below a key support level. A strong U.S. dollar continues to weigh on the precious metal.
The silver market dropped during Thursday’s trading session. If prices fall below Wednesday’s low, the metal could drop to the $50 level. Short-term rallies are currently being sold by traders.
The 200-day exponential moving average (EMA) sits at $67.54 and acts as a ceiling. Traders likely favor selling after any brief upward moves.
Inflation is starting to be priced out of the market. This trend generally makes commodities struggle. The U.S. dollar gains strength from sluggish global inflation and a recovering U.S. economy, adding pressure on silver.
Longer term, some analysts still favor silver. However, it may need to revisit the $50 level, which has been a historical high multiple times before.