Silver Price Analysis – Silver Continues to See Intraday Swings

Silver Technical Analysis

The market falling from there makes a certain amount of sense considering that we have so much in the way of an overhang when it comes to interest rates rising. Higher interest rates are very toxic for silver, as it is a non-yielding asset. This is the biggest issue that silver has to do with at the moment.

We continue to see the world worry about energy inflation, and while silver demand is going to be extraordinarily high, the reality is if you are an asset manager, you get a strong yield on bonds instead of risking the volatility of silver. That will continue to be a problem as long as we are pricing in the idea of energy inflation or something to that effect.

Silver Technical Outlook

If the market were to break down from here, the $70 level is a pretty significant floor, and I think a lot of people will be watching that for signs of buying pressure again. At this point, it remains crucial for the bulls in the silver pits.

Ultimately, we are dancing around the 50-day EMA, and that in and of itself could cause quite a bit of choppiness. If we can break above the $80 level, that could open up the possibility of a move to the $90 level, but I think we really need some type of relief in the 10-year yield and other bond markets, of course, in order to make that happen. So, make sure you watch both markets at present.

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