Silver prices moved lower on Monday as traders considered the possibility of central banks keeping interest rates high. Concerns about energy inflation may lead central banks to maintain tighter monetary policies for longer. This outlook generally weighs on silver prices.
The silver market struggled during early Monday trading. Analysts suggest silver could retest the $70 level if U.S. interest rates continue to climb. This level has been tested multiple times before.
Reports of a potential Iranian vessel attack in the Strait of Hormuz could push interest rates even higher. Such a development would likely work against silver’s value. Silver is known for its high volatility.
The 50-day Exponential Moving Average (EMA) continues to offer some resistance. The $80 level appears to be a short-term ceiling for silver. A break above $80 could signal a larger move towards the $90 level.