Silver Edges Up Amid Unfavourable Market Sentiment
Silver prices edged up above $58.00 on Friday's early European trading session as the US Dollar trimmed its gains. The precious metal is set for a moderate recovery this week, but remains vulnerable to further depreciation due to unfavourable market sentiment.
The escalation of conflict in the Middle East and higher US Treasury yields triggered a 4.3% reversal on Thursday, leaving Silver at risk of further decline. Investors are also concerned about potential energy shocks boosting inflation pressures, causing US Treasury yields to reach multi-month highs and pushing the US Dollar higher.
Silver traders will need to breach the $60.70-$60.90 area and early July highs around $62.50 to confirm a trend shift. On the downside, first support emerges at the broken trendline of $56.50, with additional protection at the year-to-date low of $54.77.