Support at $66 in silver prices and possible scenarios
Following the decline of silver prices from $70 to $66, investors have focused on critical support levels and new turning points.
After testing the $70 level and dropping down to $66, investors have turned their eyes to critical support and resistance levels in silver prices. Analysts point to the significance of this level.
Sharp Pullback in Silver
Silver prices rose up to $70, reaching their highest level in the last two months, before retreating to the $66 level. With this decline, investors began to closely monitor critical levels.
Causes of Selling Pressure
Simon-Peter Massabni, Head of Business Development at XS.com, stated that profit-taking following the strong rally and the closure of long positions accelerated the pullback.
Impact of Fed Policies
Following the hawkish statements by Fed Chair Kevin Warsh, the pricing of a potential interest rate hike in September drove US bond yields and the dollar higher, putting pressure on precious metals.
Importance of the $66 Support
Stating that it is too early to say that the long-term upward trend has ended, analysts emphasize that maintaining the $66 level is critical for the return of buyers.
Possible Resistance Levels
If prices hold above the $66 level, the first stop for upward movement is expected to be $68, followed by a re-targeting of $70.
Risks and Data to Watch
Inflation and employment data from the US, along with the Fed's interest rate policy and developments in the Middle East, will be decisive in silver's future trajectory.