Silver Markets Pull Back From Major Resistance
Silver markets have pulled back from the crucial $25.50 level during the trading session on Tuesday, as we continue to see a lot of hesitation. Quite frankly, the interest rates in America spiking the way they have has been a bit of a wrecking ball for precious metals, especially gold. Silver of course follows right along and therefore it is not a huge surprise to see a bit of a struggle.
SILVER Video 23.03.22
One has to wonder about the industrial demand for silver at the moment as well, as it appears we are heading into a slowdown. If that is going to be the case, then it makes a lot of sense that demand for silver may drop a bit. Regardless, when I followed the price action, I see that there is a significant amount of support at the $24.50 level, with a significant amount of resistance at the $25.50 level. In other words, we may be trying to form some type of range in this area. If that is going to be the case, then I believe we may make another run towards the highs, but you have to keep an eye on the US Dollar Index because it does have a strong negative correlation to this market most of the time.
Ultimately, I think this is a market that will continue to be very noisy but that is nothing new for silver. The 50 Day EMA is sitting at the $24.42 level and rising, so that will come into the picture as far as support is concerned as well. Ultimately, I think this is a market that will simply do what it normally does, follow gold.
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