Silver Price Analysis – Silver Drops with Higher Rates on Friday

Silver Technical Analysis

The silver market rallied a bit during the early part of the trading session on Friday but struggled at the $70 level yet again. The $70 level is an area that is a large, round, psychologically significant figure and an area that a lot of people will be watching very closely. If we were to break above there cleanly, then I think it opens up some hope.

The reality is that the interest rate situation in the United States continues to be very negative for silver as silver tends to move in the opposite direction of the US dollar. The strengthening of the US dollar is a byproduct of the higher rate.

Inflation and Energy Supply Concerns

Rallies at this point, I think the $75 level will be targeted, and I also think it will be a little bit of a barrier. After that, we have the 50-day EMA potentially offering support. I think you still see this more or less as a sell on the rally type of situation at the first signs of exhaustion.

The 200-day EMA sits near the $62.36 level, and then the $60 level. Silver just looks really bad right now, and as long as there is fear out there, the interest rates in America will continue to rise as people are betting on inflation picking up due to energy supply concerns. If that is going to be the game that we continue to play, silver will continue to drop from here. This is a market that looks very toxic at the moment, and I don’t see it changing anytime soon.

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