I noticed that silver continued its sharp decline this week, dropping to its lowest levels in two weeks at $73.35. It seems that the market has shifted its focus away from geopolitical news and is concentrating on expected central bank decisions, which is strongly pressuring precious metals in general.

The context here is clear – major central banks are leaning toward tightening their monetary policy due to inflationary pressures, and silver as a non-yielding metal always suffers in a high-interest-rate environment. The US dollar benefits from this dynamic as a safe haven, increasing pressure on silver prices.

From a technical perspective, indicators confirm the downward trend – the Relative Strength Index at 35 and negative MACD, with bears now targeting the $72.60 level, and if broken, we may see silver decline toward the 50% Fibonacci level at $72.12. The first resistance for a rebound could be at $74.70.

The conflict in the Middle East remains a factor, but it is not enough currently to strongly support silver. Crude oil prices are up about 50% from pre-war levels due to the closure of the Strait of Hormuz, but this supports the dollar rather than precious metals. The real story now is the battle between central banks and interest rates, and unfortunately, silver is on the losing side of this equation.