Silver Price Analysis – Silver Pulls Back From $60 as US Rates Climb

Silver Technical Analysis

The silver market has pulled back from the $60 level again during the trading session here on Thursday, as $60 continues to be a large round, psychologically significant figure, and US rates continue to climb. With that being the case, it’s not a huge surprise to see that we are, in fact, struggling to keep the market afloat.

The market rolling over from here would be a continuation of what we have seen for some time now, and rates look like they are not willing to slow down. This could end up being a problem. The market had recently seen support near the $55 level. A breakdown below there, and we start to look at $50 as the next support level based on historical price action. This goes back several years as an important level for market memory to return.

Climbing Yields and Geopolitical Risk Keep Pressure on Silver

To the upside, the market did reach the $63 region at one point a couple of weeks back. That has been a bit of a swing high. The 50-day EMA is racing towards that area and offering a potential ceiling as well. If the market were to attack that indicator, it would be a significant shift in momentum, probably fueled by risk-taking behavior around the world, not just here in the silver market.

Right now, the uncertainty in the Middle East continues to drive inflation expectations higher, driving rates higher, which consequently will typically work against the value of silver. This has been the case for some time now, and that correlation will be something that a lot of people will be watching.

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