Silver prices consolidation around the $64 level and critical technical levels
While prices in the silver market hover around $64, the critical battle between the $63 support and the $66 resistance is closely monitored by investors.
As silver prices consolidate around $64, the market is closely monitoring the struggle between the $63 support and the $66 resistance. Following sharp movements, the pressure of the dollar and bond yields on precious metals continues.
Weekly Close and Price Trend
Although silver recovered some of its losses on the final trading day of the week, it remained in negative territory on a weekly basis. Climbing back above $64 on Friday, prices showed a recovery towards the $55 region during the day.
However, this rise could not be sustained and silver finished the week at approximately the $64.30 level. Amid accelerating selling pressure during the week, prices had pulled back to the $63 region.
Fed Policies and Bond Yields
One of the main topics determining the direction of silver prices continues to be the interest rate policy of the US Federal Reserve. Expectations that the Fed may continue its rate hikes keep US bond yields high.
For silver, which does not yield interest, high bond yields can limit investor demand. Additionally, the strengthening of the dollar makes silver expensive for investors using other currencies.
Critical Support and Resistance Levels
In the technical outlook, the area around $63 has become a critical zone for downward movements. The protection of the approximately $62.90-$63.45 band is important for the price to attempt an upward movement again.
For the rise to continue, the selling pressure around $65 must first be overcome. Meanwhile, the approximately $66.20 level stands out as a stronger resistance.