Silver faces headwinds from inflation fears, may revisit $48 level

Silver is struggling to maintain ground as inflationary pressures and interest rate uncertainties continue to dampen investor appetite for the precious metal. The white metal has broken below its $54.50 support level, prompting concerns about further downside risk in the near term.

According to market analysts tracking the commodity's performance, silver may face a retest of the $48 mark if current selling pressure persists. The breakdown from established support levels suggests that broader macroeconomic headwinds are outweighing any traditional safe-haven demand for precious metals.

For sentiment to improve, silver would need to mount a sustained recovery above the $55 level, which would signal a shift in market momentum. This recovery threshold is critical as it would help ease the current wave of selling and potentially stabilise prices at higher levels.

Market participants are closely monitoring inflation data and central bank policy signals, as these factors are playing an outsized role in determining precious metal valuations. Until there is more clarity on the trajectory of interest rates and economic growth, analysts caution that volatility in silver prices may remain elevated.