Silver has broken below the $60 level, and FXEmpire analyst Christopher Lewis flags $57 as the next line in the sand before a possible slide toward $50. He ties the weakness to an elevated U.S. dollar and elevated American interest rates, which dull the appeal of a non-yielding metal.
Silver has broken under the $60 mark that analyst Christopher Lewis calls psychologically important, and he says $57 is the next line in the sand before a potential slide to $50. Writing for FXEmpire, Lewis argues the metal could be in a bit of trouble while U.S. rates stay high.
The market traded negatively through the week, and although Lewis still sees some support near the broken $60 area, he thinks silver probably could be in trouble because the United States dollar and American interest rates remain elevated. His logic is fundamental: it makes no sense to hold a non-yielding asset when a bond offers elevated, near risk-free rates.
Because of that, Lewis says he is hesitant to get bullish for now. He is watching the $57 level, warning that a break below it opens the door to a $50 target. Yet he also notes the metal sits where some pushback is likely, with $60 a large, psychologically significant figure.
On the upside, Lewis says a move back above the 50-week EMA at $64.20 could open a run toward $70. For now, though, he sees no fundamental case to favor the metal over yield-bearing bonds.
Longer term, Lewis expects silver demand to return once inflation concerns ease. He frames the current bout as a supply-side problem rather than strong demand, with the market still wary of a stagflation-type issue.
Source: FXEmpire
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