Hard Selling in Silver: Earnings of the Last Two Months Given Back

The strong upward trend in the precious metals market in recent weeks has been replaced by sharp sales. Silver, whose ounce price approached the 70 dollar mark, completed last week with a 3 percent loss at 61.72 dollars, giving back the gains it made in the last two months.

Gram silver started the new week at 97.32 TL in the domestic market. After the sharp decline, market actors and individual investors focused on the price movements of silver in the coming days.

INTEREST AND DOLLAR SILVER ARE BEING PRESSED

US bond yields and the Dollar Index continue to be decisive in the short-term direction of silver. The US 10-year bond interest rate rose to 5.2 percent last week, reaching the highest level in nearly 19 years. This rise reduced the attractiveness of precious metals such as silver, which do not provide interest income, for investors.

Although the Dollar Index completed the week with a decline, it continued to remain above the 101 level. Although the limited loosening in the dollar supported the recovery in silver, it was not enough for the ounce price to exceed the 65 dollar threshold.

CHANGE IN GEOPOLITICAL RISKS AFFECTED SILVER

Developments in global politics also continue to have an impact on the pricing of precious metals. Expectations that diplomacy channels between the USA and Iran could be reopened dragged down oil prices and caused the safe haven demand for silver to weaken.

Thus, the geopolitical risk factor, on which silver received support against high bond interest rates and the strong dollar, also weakened. Analysts state that if US bond interest rates and the dollar decline together in the new week, there may be signs of recovery in silver.

CRITICAL LEVELS WILL BE OBSERVED IN SILVER

In technical analysis, the first important threshold for silver stands out as the 50-day moving average at $63.77. It is considered that if the price rises above this level, the short-term recovery trend may gain strength.

If the $65.32 resistance is exceeded in upward movements, the $66.75 and $67.55 levels will come to the fore. If the downward pressure continues, $63.07 and then $62.31 supports will be followed.

Investors are expected to closely watch silver's movement between $63 and $67.55 in the coming days.