After a long period of calm, volatility has returned to the silver market. Silver surged to a two-month high, rallying more than 20% from its May lows in just a week.
The silver market rallied to kick off the trading session on Tuesday, but it looks like the $80 level is going to offer a bit of a barrier. The range we have been in continues to be held firm.
XAGUSD faces pressure as higher inflation and Fed rate outlook fuel Treasury yields and a stronger dollar outlook.
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The silver price in US dollars (XAG/USD) traded at 77.501360, up 1.07%, stabilising after a steep correction that saw the metal fall nearly 9% on May 15. Silver has endured extreme volatility this month, sliding from recent highs above 87 even though the broader 12-month trend remains strongly positive.
Silver is at a critical technical juncture after a sharp reversal from recent highs, with price action now testing whether a bullish recovery or deeper correction will follow.
The silver market gapped lower to kick off the week but has seen buyers jumping into the market trying to drive prices higher again.
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