Silver Slumps as Rising Interest Rates Squeeze Prices

The silver market is facing pressure from rising US interest rates, which are limiting its upside momentum. The price of silver has fallen to the bottom of its range of $63.50-$70, with some analysts warning that a breakdown could bring $60 support into focus.

According to technical analysis, the 50-day and 200-day EMAs on the silver daily chart are both flat, indicating a lack of clear direction. However, the real story here is the impact of rising interest rates on silver prices.

Silver does not typically perform well in high-interest-rate environments, but demand for the metal remains strong. Despite this, production levels have not kept pace with demand, which has put upward pressure on prices.