Silver Prices Plummet Amid Rising Interest Rates Expectations
Silver prices plummeted at the end of August 30th as investors adjusted their expectations of interest rates set by the US Federal Reserve (Fed). The sharp decline in silver prices coincided with rising USD and US bond yields, putting pressure on precious metals.
The Fed's Chairman Kevin Warsh made a tough statement at the Jackson Hole conference, causing an increase in both USD and US bond yields. This resulted in a significant decrease in spot silver prices, which fell to around 66.21 USD/ounce, down more than 4% from previous levels.
According to analysts, silver is inherently an unprofitable asset when yields rise. The metal's price has been unable to maintain the 70 USD/ounce range and has successively penetrated support zones of 69.96 USD, 69.50 USD, and 67.69 USD/ounce.
Technical developments suggest that silver prices may continue to fall if they break below the 66 USD/ounce support zone. However, regaining the 67.69 USD/ounce threshold could signal a potential recovery, with prices potentially heading up to 69.50 USD and 69.96 USD/ounce.