Silver prices are now trading within the $70.0–$76.0 range, caught between a global supply deficit and the Federal Reserve’s (Fed) hawkish stance, compounded by the ongoing Middle East crisis.
The US Consumer Price Index (CPI) for March jumped to 3.3%, tying the central bank’s hands. As a result, officials have struck a more hawkish tone and ruled out any rate cuts in the coming months. In theory, high inflation figures could support silver as a safe-haven asset. But while this looks good on paper, it doesn’t click under current conditions, working against the metal. Real borrowing costs tend to rise in such an environment, making bullion more expensive for industrial uses (electric vehicles, solar panels, electronics, etc.).
Failed negotiations between the United States and Iran and a subsequent escalation of the Middle East conflict also weigh on the precious metal. Meanwhile, crude prices are hovering above $100 per barrel, and silver is feeling the heat. Geopolitical tensions keep fueling fears of a global energy shock and potential economic downturn—the worst conditions for the metal market. Asian consumers are also cutting back on purchases amid rising logistics risks, adding further short-term pressure on bullion.
The final recommendation:
— Sell silver at the current price, targeting $70.0 within the next couple of weeks.
— Place a Stop Loss order 1% above the entry point to manage risks if the market plays against us.
This content is for informational purposes only and is not intended to be investing advice.
