Silver Price Analysis – Silver Continues to Move on Rates

Silver Technical Analysis

The silver market tried to rally a bit during the early hours on Wednesday but gave back those gains to show signs of hesitation. The interest rates in America continue to cause headaches, and I do think that ultimately, you have a situation where traders are looking at this through the prism of whether or not they can push towards $70.

Yields and Resistance Levels

If they can push down to the $70 level, we have a situation where the market really could be an interesting short opportunity. Breaking below $70 opens up the possibility of a move down to the 200-day EMA. As those 10-year yields continue to rise, that continues to put a lot of pressure on silver as it is a non-yielding asset.

To the upside, we have the 50-day EMA near the $77.16 level offering a little bit of a barrier, followed by the $80 level. Ultimately, this is a market that I think continues to bang around and will continue to see a lot of issues.

Expect choppiness. I do expect that we will try to find some type of range, but this is all about the bond market right now. The bond market is being driven by the noise coming out of the Middle East and concerns about energy inflation, so probably no real relief here soon. Silver continues to languish. At this point, the silver market is going to be a very threatened market and will be as long as rates continue to push higher.

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