Silver Price Analysis – Silver Continues to Struggle at 60 USD

Silver Technical Analysis

The silver market continues to see a lot of back-and-forth trading, and I think this is a market that is watching the $60 level. The $60 level had previously been both support and resistance, and now I think it’s more or less a fulcrum for price.

If we can break above $60 on a daily close, significantly, then we have the possibility of going to the 200-day EMA, but I think you still have a lot of issues with silver because the US dollar is so strong, and the strong US dollar really punishes silver. Silver tends to be even more sensitive to the dollar than gold, so in that environment, silver really underperforms.

Technical Outlook and Currency Dynamics for Silver

If we break down below the $57 level, I think at that point in time, silver probably goes looking to the $50 level. All things being equal, I think short-term rallies are probably sold into, at least until the fundamentals change. And right now, it doesn’t look like the fundamentals are changing anytime soon.

In fact, against certain currencies, the US dollar is starting to run away. That, I think, continues to be a major problem here, and as a result, I’m a little cool on the silver market at the moment.

Longer-term, I do believe silver takes off, and I think it makes a giant move before it’s all said and done, but we’re just not there right now. We’ve moved away from the inflation trade and started trading the dollar again. This is a correlation that changes from time to time, but at the moment – it is what matters the most.

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