Silver Price Analysis – Silver Drops as Rates Rise on Thursday

Silver (SI1!) Technical Analysis

The 10-year yield is where I started yet again during the session, and it is worth noting that the market is well above the 4.30% level again and that does put a lot of pressure on different assets. Watch the 10-year yield in America. If it breaks back above the 4.30 level, then things could get ugly for silver. The silver market has seen a lot of noisy trading as the headlines continue to move markets, via the interest rate markets in the US and beyond.

If we break down below the 50-day EMA, then it could open up the possibility of a move down to the $72 level. The 50-day EMA sits just above the $77 level, and I think that represents an opportunity to start looking for value. If we pull back towards the $75 level, I’ll be looking for a bounce to take advantage of as it could be a bit of value in this market. Anything below $70 would be extraordinarily negative.

Interest Rate Pressure and Key Support Zones

The $70 level is the floor in the overall consolidation. I do think that silver has more of an upward tilt to it, so buying dips could be a way to play this market, but you’re going to have to be very cautious, as silver is much more volatile than gold. The interest rates in America, of course, have a major influence on what happens next. Silver will continue to move based on interest rates, so make sure to watch them.

If interest rates in the United States start to pick up, then that will put a lot of pressure on silver. I think the biggest thing to pay attention to when it comes to the silver market is the 10-year yield. If it starts to drop, that would be good for silver, but obviously, it jumped at the open. I have no interest in shorting this market, and I do think that little pullbacks will probably offer a bit of value for those looking to get into the markets. Regardless, eventually we will go back to the supply and demand equation, which does favor silver longer term.

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