Silver price falls below 60 dollars

Silver prices have dropped below $60, with the metal falling 1.5% to $58.97 an ounce by 06:33 UTC today. The decline follows the release of the Federal Reserve’s September meeting minutes, which indicate that most officials expect another rate hike before the end of the year.

The Fed’s decision to raise its target range by 25 basis points to 3.75% to 4.00% in September has contributed to the drop in silver prices. Higher rates and a stronger dollar increase the cost of holding silver, which pays no interest.

Silver Price Analysis

A weekly chart analysis reveals that last week’s candle closed below the March lows and the 50-week moving average, suggesting a potential drop to the $45 area, more than 20% below the current price. The same candle finished below the 50-week exponential moving average, which now sits at $63.62.

The current price level is near $60.40, under the horizontal support at $61.15 set by the March lows. A daily close below $61.15 would activate $55.42 and then $45.40, according to a previous analysis.

Market Expectations

Analysts have been flagging headwinds for silver, including a stronger dollar, high yields, and the possibility of another Fed hike. Mikołaj Sobierajski, a market analyst, noted that only a clear reversal of one of these factors could give the metal room to rebound.

Rising Treasury yields and a stronger dollar also affected crypto markets on Wednesday.

Counterarguments

One counterargument to the bearish scenario is positioning. Speculators held a net long of 22,083 contracts, according to the Commodity Futures Trading Commission data, which signals a slightly oversold market and lowers the risk of a cascading sell-off.

The supply side still favors longer-term bulls, with the Silver Institute expecting 2026 to be the sixth straight year of market deficit. Gerald Celente, founder of the Trends Research Institute, sees silver as a long-term holding due to its use in electronics and solar energy.

Key Levels

The level that matters for the bearish scenario is $61.15. A weekly close back above this level would put the breakdown in doubt, and only a daily close above the trend line and the EMA band near $65 would cancel it. The summer lows at $55.42 sit about 6% below the current price and will be a key test for buyers.

The daily chart shows that silver has lost the 200-day EMA twice, first in June and again in early September. The trend line drawn from the May high near $89.50 has turned back both the late-August and late-September rebounds, indicating a strong resistance band about 8% to 10% above the current price.