Silver Price Analysis – Silver Continues to Trade with Rates

Silver Technical Analysis

The silver market continues to be quite choppy, and I think that’s probably going to be the story here as the interest rates in the United States and the 10-year yield continue to hover around that crucial 4.30% level.

That’s an area that I think ultimately will determine risk appetite. Above it, things get squirrelly and risk appetite disappears. Below it, risk appetite returns. And that makes a lot of sense, considering that over the weekend, we are going to have talks between the Iranians and the Americans in Pakistan.

Geopolitical Influence and Technical Outlook

A ceasefire would go a long way for risk appetite and that would send silver higher, all things being equal. The 50-day EMA sits just above and is causing a little bit of resistance, but above that, we have the $80 level, an area that’s probably even more important as it’s proven to be so a couple of times now. Because of this, it is, at least for the short term, one of the more important levels to watch on the charts.

A pullback from here could see support at the $70 level. We’ll just have to wait and see. I do think you have a situation where traders are probably going to hesitate to do anything massive here. And speaking of which, if you do find yourself in this market, the only way to protect yourself, of course, is a reasonable position size. A headline coming out at any time could send this market flying, and as a result, safety is paramount in silver at the moment.

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