Silver Price Analysis – Silver Continues to Move with Rates in the USA

Silver Technical Analysis

The silver market has been slightly positive in early trading on Tuesday as we continue to see more consolidation than anything else. That being said I don’t necessarily think that it’s a positive market because quite frankly the 10-year yield in America is screaming higher over the last several weeks and that ultimately does cause issues for non-yielding assets such as silver.

The market, of course, is going to continue to be moving on the latest Middle Eastern headlines, which, of course, are kind of a guessing game at this point. So, with all of that, I think you’ve got to look at this through the prism of a sideways market with the 50-day EMA above causing a bit of a ceiling in the short term and the 70 level below offering a bit of a floor. This is a hard floor from what I can see at the moment.

Technical Analysis and Market Sentiment

Ultimately, I think we go back and forth, and I do think that the latest headline coming out of either Washington or Tehran moving the 10-year yield, if it makes it higher, generally speaking, that’s going to make silver go lower and vice versa. This is often the case in this market, so it doesn’t surprise me at all.

Once we break out of this area, we might get a little bit more clean action, but I’m not looking for anything other than a little bit sideways back and forth, so with that position, size has to be appropriate. Don’t get too big in any particular trade, in order to protect your account.

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