The silver market faces continued volatility, with traders closely watching the $70 level. Silver prices initially fell Monday but later showed strength. This $70 mark is a psychologically important figure, drawing high interest from options traders.
US interest rates will be a key factor for silver prices. A drop in the 10-year Treasury yield could support metals. A rally in the yield, however, would pose a problem for silver.
Traders are in a wait-and-see mode, exercising caution. Volatility is almost guaranteed in the current market environment. It is important to keep position sizes reasonable.
The 200-day Exponential Moving Average (EMA) acts as a critical support level. A break below this indicator could send silver toward the $50 level. War headlines also influence bond markets, driving rates higher and weighing on precious metals.