Silver Defies Oil Rout, Targets Psychological $62 Mark

Silver prices have held near their monthly high of $61 as oil prices continue to plummet. The white metal has shown resilience in volatile trading conditions, influenced by a softer US dollar and expectations that the Federal Reserve may pause its interest rate hikes.

The drop in oil prices signals lower inflationary pressures, which could lead central banks to adopt looser monetary policies, a positive for silver. However, it also lowers production costs for miners, potentially increasing supply.

From a technical perspective, silver has broken above key resistance levels, with the monthly high near $61 acting as a critical pivot. The next upside target is the psychological $62 mark, followed by the 2024 high around $63.