Silver Price Analysis – Silver Continues to React to Yields

Silver Technical Analysis

The silver market has raced higher during the trading session on Friday as the jobs number came out weaker than anticipated.

That being said, the 200-day EMA has offered resistance. We’ll see whether or not we can get above there, but as things stand right now, this is a market that is trying to come out of a bottoming pattern and open up the possibility of a move to the $70 level. The $60 level has been a significant support, and this is a little bit of a magnet for price recently. So we’ll see whether or not that holds.

Silver is typically sensitive to interest rates, which, with a weaker-than-anticipated jobs number, gives a little bit of relief in the bond market. But rates are still somewhat elevated. And of course, we have all day to get through before we can see how this actually plays out.

External Noise Persists

Concerns in the Middle East could throw the bond market into chaos again, and that in and of itself could get things going. If we can break above the 200-day EMA, that is a technically bullish signal and would cause some headlines. In that environment, we could be looking at a move to the $70 level, an area that is a large, round, psychologically significant figure and is going to be worth paying close attention to, as these big figures typically do have some type of reaction and we have seen reactions there previously.

Short-term pullbacks at this point in time still look to be supported, but anything can happen. The 200-day EMA in and of itself is an area that technical traders will be watching.

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