Silver rebounded after a sharp drop, awaiting a pullback for confirmation.
2026-06-11 13:47:49
On Thursday during Asian trading hours, spot silver (XAG/USD) ended a two-day losing streak, rebounding to around $64.00 per ounce. Silver had previously fallen to $61.50, its lowest level in nearly 11 weeks. The rebound was driven by bargain hunting and increased market risk aversion. As silver possesses both safe-haven currency and industrial raw material attributes, its price movements are influenced by multiple factors within a global economic and geopolitical risk environment.
The military conflict in the Middle East continues to escalate, with the United States launching military strikes against Iranian targets for the second consecutive day. Markets are concerned that further deterioration could disrupt global financial markets and energy supply chains. Previously, the US launched a so-called "self-defense" military operation after an attack on a military helicopter, which subsequently triggered retaliatory actions by Iran against US military facilities in Bahrain, Jordan, and Kuwait. The US Central Command confirmed the airstrikes, and President Trump warned that the US might take stronger measures if a temporary peace agreement is not reached. Iran, however, has stated that it will not yield to external pressure.
While geopolitical risks typically enhance the safe-haven appeal of precious metals, persistently rising inflationary pressures and higher interest rate expectations are putting downward pressure on silver prices. US inflation in May, driven by rising energy prices, recorded its fastest pace in over three years. Although the data was largely in line with market expectations, the market still anticipates the Federal Reserve will maintain high interest rates for an extended period, with the market already pricing in a roughly 25 basis point rate hike by the end of the year. A high-interest-rate environment increases the yield on dollar-denominated assets, reducing the attractiveness of silver, which does not generate interest income.
Furthermore, as an important industrial metal, the demand outlook for silver is also influenced by changes in new energy, electronics manufacturing, and industrial activity. Against the backdrop of uncertainty in global economic growth, the sustainability of industrial demand improvement will be a crucial factor affecting the medium- to long-term trend of silver prices. In the short term, market focus shifts to the upcoming release of the US May Producer Price Index (PPI) and initial jobless claims data to further assess the strength of the US economy and the future policy direction of the Federal Reserve.
From a technical perspective, the daily chart shows that silver found support near $61.50 after a period of consolidation, exhibiting signs of a short-term oversold rebound, but overall it remains in a correction phase. If the price can stabilize above $65.00, it may further challenge the $67.00 to $68.00 area; if the rebound is met with resistance, silver prices may retest the support near $62.00, with the key support level to watch being the $61.50 low. The RSI indicator has rebounded from the oversold zone, and the MACD downward momentum has weakened, indicating that short-term bearish forces are beginning to ease.
From a 4-hour chart perspective, silver is showing a short-term rebound and correction, but the moving average system has not yet fully strengthened, indicating that the bulls still need further confirmation. If US inflationary pressures persist and the Federal Reserve releases hawkish signals, a stronger dollar and US Treasury yields could again suppress silver prices; conversely, if safe-haven demand further increases or weak economic data prompts the market to reduce its bets on interest rate hikes, silver prices may extend their rebound. In the short term, the key focus should be on the battle between bulls and bears around $64 and whether a breakout above $65 occurs.
Editor's Summary : The silver market is currently in a balancing act between safe-haven demand, anticipated industrial demand, and the Federal Reserve's monetary policy. Escalating tensions in the Middle East are providing temporary support for precious metals, but rising US inflation is causing the market to reassess interest rate paths, significantly limiting silver prices. Going forward, investors need to pay attention to US PPI, employment data, Fed policy signals, and developments in the Middle East. In the short term, silver may maintain a high volatility pattern. If it successfully breaks through key resistance areas, the rebound potential could further expand; otherwise, the risk of retesting lower support levels should be noted.
The military conflict in the Middle East continues to escalate, with the United States launching military strikes against Iranian targets for the second consecutive day. Markets are concerned that further deterioration could disrupt global financial markets and energy supply chains. Previously, the US launched a so-called "self-defense" military operation after an attack on a military helicopter, which subsequently triggered retaliatory actions by Iran against US military facilities in Bahrain, Jordan, and Kuwait. The US Central Command confirmed the airstrikes, and President Trump warned that the US might take stronger measures if a temporary peace agreement is not reached. Iran, however, has stated that it will not yield to external pressure.
While geopolitical risks typically enhance the safe-haven appeal of precious metals, persistently rising inflationary pressures and higher interest rate expectations are putting downward pressure on silver prices. US inflation in May, driven by rising energy prices, recorded its fastest pace in over three years. Although the data was largely in line with market expectations, the market still anticipates the Federal Reserve will maintain high interest rates for an extended period, with the market already pricing in a roughly 25 basis point rate hike by the end of the year. A high-interest-rate environment increases the yield on dollar-denominated assets, reducing the attractiveness of silver, which does not generate interest income.
Furthermore, as an important industrial metal, the demand outlook for silver is also influenced by changes in new energy, electronics manufacturing, and industrial activity. Against the backdrop of uncertainty in global economic growth, the sustainability of industrial demand improvement will be a crucial factor affecting the medium- to long-term trend of silver prices. In the short term, market focus shifts to the upcoming release of the US May Producer Price Index (PPI) and initial jobless claims data to further assess the strength of the US economy and the future policy direction of the Federal Reserve.
From a technical perspective, the daily chart shows that silver found support near $61.50 after a period of consolidation, exhibiting signs of a short-term oversold rebound, but overall it remains in a correction phase. If the price can stabilize above $65.00, it may further challenge the $67.00 to $68.00 area; if the rebound is met with resistance, silver prices may retest the support near $62.00, with the key support level to watch being the $61.50 low. The RSI indicator has rebounded from the oversold zone, and the MACD downward momentum has weakened, indicating that short-term bearish forces are beginning to ease.
From a 4-hour chart perspective, silver is showing a short-term rebound and correction, but the moving average system has not yet fully strengthened, indicating that the bulls still need further confirmation. If US inflationary pressures persist and the Federal Reserve releases hawkish signals, a stronger dollar and US Treasury yields could again suppress silver prices; conversely, if safe-haven demand further increases or weak economic data prompts the market to reduce its bets on interest rate hikes, silver prices may extend their rebound. In the short term, the key focus should be on the battle between bulls and bears around $64 and whether a breakout above $65 occurs.
Editor's Summary : The silver market is currently in a balancing act between safe-haven demand, anticipated industrial demand, and the Federal Reserve's monetary policy. Escalating tensions in the Middle East are providing temporary support for precious metals, but rising US inflation is causing the market to reassess interest rate paths, significantly limiting silver prices. Going forward, investors need to pay attention to US PPI, employment data, Fed policy signals, and developments in the Middle East. In the short term, silver may maintain a high volatility pattern. If it successfully breaks through key resistance areas, the rebound potential could further expand; otherwise, the risk of retesting lower support levels should be noted.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
