Silver Price Analysis – Silver Continues to See Pressure Early on Wednesday

Silver Technical Analysis

The silver market has initially pulled back just a touch during the trading session here on Wednesday but has bounced a bit to show signs of life. Ultimately, silver is going to be a very interesting market to watch cause we are near a major support region, and I think a lot of that will come into play here as interest rates in America are still very high, and that does put a certain amount of downward pressure on silver in general.

The 200-day EMA is at $67.80 and could offer a little bit of a resistance barrier right along with the $70 level. The $70 level was the bottom of a consolidation range, but silver, right along with gold, has gotten absolutely crushed because they are non-yielding assets recently, and that will continue to be the main story here in the silver market.

Interest Rate Pressures and Geopolitical Headwinds

On rallies that show signs of exhaustion, you probably will see more sellers come back into the market to try to drive silver down to $60. While I do like silver longer term and I do think it goes much, much higher, the reality is that until rates calm down, that supply and demand imbalance really isn’t on the mind of traders.

I think longer term silver probably revisits $120 an ounce, but until the situation in the Middle East stops—and what I mean by that is we get an actual lasting peace—silver is going to struggle to maintain any type of longer-term buying pressure.

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