Silver prices jumped Wednesday following news of a Middle East ceasefire, which sent interest rates lower.
The precious metal benefits from falling rates. Silver is a non-yielding asset, meaning higher rates typically work against it. Prices rose almost 8% during the trading session.
Traders are now watching the 50-day Exponential Moving Average (EMA). The market has tested the $70 level as a floor multiple times. Breaking above $80 could open a path toward $90.
Analysts advise against chasing the current rally. They suggest waiting for short-term pullbacks to find better value. This approach helps control risk in an impulsive move.