Silver Prices Plummet Amid Rising Interest Rate Expectations

The global silver price dropped sharply on August 30th due to market adjustments in interest rate expectations. The US dollar and rising US bond yields put pressure on silver prices, causing a strong selling pressure on precious metals.

The spot silver price fell more than 4%, down to around $66.21 per ounce, after failing to maintain the $70 per ounce range. This decline indicates increasing selling pressure in high resistance areas.

Technically, silver prices have penetrated several support zones, including $69.96, $69.50, and $67.69 per ounce. The next important support zone is $66 per ounce, which may lead to further declines if broken.

The market's expectations about the Federal Reserve's interest rate policy play a significant role in silver prices. If the pressure from the US dollar and yields subsides, and safe-haven demand and expectations of monetary policy easing return, silver can recover.