Silver Price Analysis – Silver Falls as Rates Rise

Silver Technical Analysis

The silver market has fallen a bit during the early hours on Tuesday as interest rates in the United States continue to climb. With that being the case, it does make a certain amount of sense that we see non-yielding assets such as silver fall.

And now I think we may go looking for a test for the $70 level. The $70 level is a large, round, psychologically significant figure that people will be watching very closely. Ultimately, I think this is a market that is trying to sort out where the range is going to be before it’s all said and done. This is a market that will continue to be one that remains noisy, but eventually, we will get back to the supply and demand situation again.

Interest Rates and Market Pressure

But at the same time, we have so many concerns in the Middle East that the interest rates in the United States and other places, for that matter, continue to rise. As long as that’s the case, it just puts too much pressure on silver for it to take off.

If rates do drop, the 50-day EMA, just above could be an area where you would expect to see a little bit of resistance, but that resistance should give way to a move to the $80 level.

Ultimately, I think silver becomes bullish, but I also think it is a longer-term play and therefore the fluctuations of the day will continue to make this very noisy. A little bit of patience goes a long way. Keep an eye on that 10-year yield; it’ll give you an idea as to where we might end up.

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