Silver prices (XAG/USD) rose on Thursday, trading at $64.05 per troy ounce, up 1.05% from $63.39 on Wednesday, according to FXStreet data [1]. The metal reached session highs at $64.50 after hitting two-and-a-half-month lows at $61.50 earlier in the day [2]. Despite the rebound, silver prices have decreased by 9.89% since the beginning of the year [1].
The Gold/Silver ratio stood at 63.78 on Thursday, down from 64.24 on Wednesday, indicating a slight narrowing in the relative valuation between the two metals [1]. Market sentiment was influenced by ongoing negotiations between the US and Iran, which soothed markets and provided some support to silver prices. CNN News reported that US-Iran talks are still on track, raising hopes for a negotiated end to the war [2]. Earlier in the day, silver extended its decline as the US launched attacks on Iran’s military sites and Tehran responded by targeting US assets [2].
US Consumer Price Index (CPI) figures released on Wednesday showed inflation rising at its fastest yearly pace in more than three years, increasing expectations that the Federal Reserve may hike interest rates at least once this year [2]. The CPI release sent US Treasury yields and the US Dollar higher, adding pressure on precious metals [2].
Technical analysis suggests silver remains vulnerable while below $66.00, with momentum indicators showing soft performance and resistance likely above $66.00 [2]. Bulls would need to breach the June 8 low at $66.04 to ease downside pressure, while support is seen at the channel floor around $62.00 and the year-to-date low near $61.00 [2].
CONCLUSION
Silver rebounded above $64 per ounce following geopolitical developments and inflation data, but remains in a bearish near-term trend with resistance above $66.00. Market sentiment is cautious, as ongoing US-Iran negotiations and expectations of higher US interest rates continue to weigh on precious metals. Investors should monitor technical levels and geopolitical news for further direction.