Silver Price Analysis – Silver Continues to Move with Interest Rates

Silver Technical Analysis

The silver market has been pretty noisy in early trading, as we are down about 1.5%. That being said, this is a market that I think is going to be moving with interest rates.

It is worth noting that we are hanging around the 4.30% level and this is an area in the 10-year yield that has been like a trigger for how markets behave. In fact, you can see the inverse correlation between yields and silver. Therefore, as we are at 4.289% as I record this, it does make a certain amount of pressure known on the market.

With that, I think the market is going to see quite a bit of selling pressure if we do, in fact, turn things around to the upside. If we continue to break down from here, that should be good for silver, allowing it to test the 50-day EMA like it did on Wednesday and perhaps go looking at the $80 level.

Geopolitical Tensions and Market Chop

All things being equal, the geopolitical tensions, I think you do have a situation where traders are going to be a bit cautious, as peace in the Middle East would be fragile to say the least and of course, traders will continue to have to watch the news wires for the latest headlines that will move the bond markets.

I do think more likely than not, we have more of a sideways chop coming in this market, at least until we get some type of clarity. The ceasefire, of course, was a great start, but we’ve already seen several attacks after the ceasefire, so we’ll see if that actually holds.