Silver Price Analysis – Silver Drops to Kick Off the Week

Silver Technical Analysis

The silver market gapped lower to kick off the trading session here on Monday as concerns about the Middle East continue to be a major issue overall. That being said, since then, we’ve heard that the Iranians are willing to allow nuclear inspectors into their country, and that at least is a sign that things may be getting a little bit better.

Ultimately, the $60 level underneath should remain pretty much support, with the $70 level above offering resistance. We are sitting just below the 200-day EMA, which is more or less a magnet for price.

Macro Drivers and Technical Levels

Ultimately, I think this is a market that will continue to be noisy, continue to bounce around, and I think ultimately, we’ll have to make a much bigger decision. Once it does, it should be fairly obvious, but this is a market that I think once we can get through the Middle Eastern problems, people may start to focus on the fact that there is not enough silver out there for the AI or the electrification trade. This continues to be a longer-term macro tailwind, but the market obviously hasn’t been paying as much attention to this lately.

And that may be the next catalyst for a bigger move. We’ll just have to wait and see. Short-term dips continue to be buying opportunities, but if we break down below $60, that could change everything. We could start to target $50 at that point, but it would take a significant amount of selling to force that move.

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