Silver Price Analysis – Silver Continues to See Interest Rate Sensitivity

Silver Technical Analysis

The silver market continues to see a lot of noisy behavior, with a lot of questions about whether or not interest rates will continue to rise or fall. They have been a bit noisy in early trading on Monday, which makes sense as the Israelis and the Iranians continue to throw missiles at each other.

However, the United States has not gotten involved, and therefore, it gives a little bit of a sigh of relief. Nonetheless, I need to see the silver market recapture the $70 level to the upside to get interested. We are in an area that had previously been supported near the end of March, so we’ll just have to wait and see how that plays out.

The Supply Deficit Story

One would think there probably is going to be some demand here. Longer term, I am very bullish on silver, and I do think that the lack of supply will eventually be the story. After all, it was most of 2025, and the situation hasn’t gotten any better. We still need a lot more silver than we produce, although in all fairness, it’s been that way for a very long time. It’s just now that people had started to focus on it.

If we break down below the lows of the day for Monday, we could go looking to the $60 level. That would almost certainly be accompanied by higher interest rates in the United States, as they rise perhaps to 4.65% or beyond. Higher interest rates are toxic for silver. That, of course, is a well-known correlation. Ultimately, though, if rates drop, that could be what pushes silver above $70.

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