Silver Price Analysis – Silver Continues to See Interest Rate Noise as a Factor

Silver Technical Analysis

With rates dropping a little bit, you would think silver would have rallied, but that was very short-lived, as rates are starting to flatten out in America. Ultimately, I think this is a situation where we are basically in a range, and I think that range continues to hold.

The 50-day EMA above offers resistance, and if we can get above there, then I think we could take a look at the $80 level, which is a large round psychologically significant figure and an area that I think a lot of people will be watching very closely because if we can break above the $80 level, it could open up the possibility of a move to the $90 level.

Support Levels and Interest Rate Sensitivity

To the downside, the $70 level offers pretty significant support, and I think that’s the bottom of the overall range, especially as the 200-day EMA starts to come into the picture to offer support as well. Keep in mind, silver, of course, is very sensitive to the interest rate markets, and as we are hanging around the 4.45 level, an area that’s been important multiple times, I think you will continue to see a lot of noise in silver.

I expect a lot of questions to ask of this market. I also recognize that the US dollar, which is also influenced by the bond market, will have a major part to play as well. A strong US dollar typically is bad for silver, so keep that in mind.

And right now, I think we’re just going back and forth as traders are trying to sort out the risk appetite, especially with all of the noise coming out of the Middle East between Iran and the United States.

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