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

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. 

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.