Silver Price Analysis – Silver Continues to Test the $80 Level

Silver Technical Analysis

The silver market rallied slightly during the trading session on Friday to hang around the $80 level. The 50-day EMA sits just below offering support and I think in general you have a situation where the market is trying to determine whether or not we can continue to go to the upside. This is probably the easiest way to determine the momentum that may or may not be in this market.

If we do break above the $82 level, I think that would be the clue that we’re heading to $90 after that. Keep in mind that the interest rate is the main driver of silver, with the 10-year rate a major driver in the United States.

Yield Trajectory and Macroeconomic Inputs

So as yields rise, the market for silver generally softens and vice versa. We are hanging around that crucial 4.30% level that we’ve been teetering back and forth from over the last couple of weeks and it literally is what drives where we go next right now.

The interest rate is moving on headlines coming out of the Middle East, optimism, lack of optimism, trade concerns, and, of course, energy input, causing inflation in various economies. As things stand right now, I think we’re just testing $80 and we’re trying to determine what the next move is. A pullback could open up a drop to 70, a breakout could lead to a move to 90. This is a market that has been in a bit of a range for some time, and it looks like we will continue to follow it going forward.

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