Silver Buyers Defend Key Support Zone Amidst Rising Rates

The US dollar index surged on the Fed's announcement, causing silver prices to drop from $64.94 to $62.31 in a single session. Despite this significant decline, buyers defended the 50-day average of $62.81, preventing sellers from pushing silver below this key level.

This failure is notable because it marks the fourth time this week that buyers have successfully tested and defended the support zone near $63. The metal had already been absorbing rising rate expectations, a stronger dollar, and higher yields before the Fed's statement on Wednesday.

According to technical analysis, a trade through $62.31 would reaffirm the downtrend, while a trade above $68.33 would change the main trend to up. However, despite the bearish bias, the 50-day moving average and retracement zone at $62.98 to $61.04 have stopped every selloff this week.