Silver Prices Near $70 as Bullish Momentum Continues

Silver prices have been consolidating below $70, but they're nearing that mark and could potentially reach $90 if they break out. In the last week, silver rose by 6.56%, and over the past month, it has accumulated a gain of over 18%. This bullish momentum is driven by changes in the US dollar and US interest rate expectations.

The weakening US dollar is causing precious metal assets like gold and silver to see increased capital flow into them. As gold briefly rose to $4,696.82 intraday, hitting a near three-month high, it's drawing some capital toward silver. With spot silver now at a two-month high, it's testing the key psychological level of $70.

Looking ahead, the primary focus for the silver market will remain on US economic data and Federal Reserve policy signals. This week, the market will closely monitor US PCE inflation data and Fed Chair Kevin Warsh's speech at Jackson Hole. If inflation continues to cool and market expectations for Fed rate hikes further diminish, the US dollar and Treasury yields could remain under pressure, benefiting both gold and silver.

On the technical side, silver prices have been testing the key $70 level to the upside for three consecutive trading days without a breakout, indicating strong resistance at this level. If silver breaks out above $70, further upside space will open up, with the potential to test the $80 mark and potentially rise to around $88-$90.