Silver Price Analysis – Silver Continues to See Rates Influence Moves

Silver Technical Analysis

The silver market has broken above the $80 level during the trading session on Thursday as interest rates continue to dip in the United States. This is a very bullish turn of events. The question now is: can we break the swing high from April 17, which is right around $83.50?

Probably won’t do it on Thursday, but as rates continue to drop, that should continue to help silver along. So, we’ll have to watch that 10-year yield. The closer we get to 4.30% and below, the better silver is going to do, as it’s a non-yielding asset. There does seem to be some belief in the idea that there could be peace in the Middle East, and that, of course, is a major boon for all risk appetite-based assets, including silver and other commodities.

Support Levels and Market Consolidation

Pullbacks from here will see support at the $76.95 level in the form of the 50-day EMA, and then again down to the $75 level followed by $70. $70 is going to be your floor in the market. Overall, longer term, I think we’re still in a consolidation phase between $70 and $90.

But the noise in the bond market continues to be a major issue for everyone involved. In this environment, it’s very erratic and nervous type of trading. So, by all means, make sure your position size is reasonable because you could get hurt here if you are not careful. Position sizing will be the major way you can protect yourself in this type of environment.

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