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Silver prices experienced a sharp sell-off on Thursday before rebounding from the critical $70 support level as US 10-year Treasury yields retreated below 4.3%. The bounce kept the price within the established $70–$90 range, with short-term momentum favoring the upside ahead of the thin Good Friday trading session. The move highlights the inverse relationship between silver and bond yields, where lower yields typically reduce the opportunity cost of holding non-yielding assets like precious metals.
For markets, this volatility underscores silver's sensitivity to macroeconomic factors, particularly interest rate expectations. Traders are closely monitoring the Federal Reserve's policy trajectory, as any shifts in rate projections could influence both yields and silver prices. The $70 level has emerged as a key psychological and technical support, with a breakdown below this level likely to trigger further downside risks.
Looking ahead, investors should watch for a potential breakout above $90, which could signal a shift in sentiment toward risk-on assets. Conversely, a sustained move below $70 might indicate renewed risk-off positioning. The upcoming US economic data releases and central bank statements will be critical in determining the next directional move for silver.
