Posted 4th October 2023

Silver Price News: Silver Eyes $21 After Rapid Sell-off Amid Rate Fears

silver eyes 21 dollars after rapid sell off

The perfect storm hit the silver price in the last few days, and the precious metal is now attempting to find footing near $21 following a sharp sell-off that dragged prices to a 7-month low amid concerns over a prolonged high-rate environment.

The descent in silver prices can be attributed to several factors. Investors are growing increasingly apprehensive about the potential of a long-term high rates environment. Compounding this, the US dollar has continued to strengthen while interest rates remain high. 

silver price kag on kinesis exchange
Silver ($/oz) price – 4hour view – from Kinesis Exchange

The spectre of enduring high rates poses a threat of ushering in a recession, or at the very least, an economic slowdown, a scenario that could dent demand for silver, given its substantial industrial application.

From a technical point of view, after the black tunnel of the last few days, yesterday we saw the first attempt at consolidation, as silver prices, after dipping to $20.7, rebounded to hover above the $21 mark for several hours. We cannot yet see any inversion signal, but the price has found a solid support zone.

The bearish pressure on silver will likely remain unchanged for a while, but the rapid pace of the recent sell-off might prompt a reassessment among investors. As volatility subsides, long-term buyers could re-emerge, aiding price stabilization efforts.

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