Silver Price Analysis – Silver Drops Evens as Rates Slip

Silver Technical Analysis

The silver market has pulled back just a touch during the trading session on Friday, despite the fact that rates have dropped a bit. That being said, this is a market that I think continues to be very noisy, and even with rates dropping, they are still pretty high, so that is going to continue to cause a little bit of trouble for silver. I think ultimately in the short term, we are looking at this at the crossroads here, if you will, trying to figure out which direction we are trying to go in a longer-term move. Ultimately, silver is something that I like a lot, but the noise is a problem at the moment.

Key Technical Levels and Market Outlook

If we do rally, the $80 level I think ends up being a bit of a barrier. If we can break above there, then $90 could open up as a potential target. Regardless though, even if we fall, I think $70 is probably an area a lot of value hunters would return.

After all, silver has a huge problem when it comes to supply. Right now, though, the big thing that’s working against it is the shock in the bond market, the higher interest rates. As long as that’s a thing, I think it causes some issues, but ultimately, a lot of back and forth I think is what we’ll see heading into the weekend. I just don’t see people putting huge positions on with all of the headline risk that could happen at any given moment.

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