Silver Price Analysis – Silver Rallies with Interest Rates in the US Dropping

Silver Technical Analysis

The silver market has rallied quite nicely during the trading session on Tuesday as we continue to see a negative correlation to interest rates. As interest rates drop, silver goes higher. If interest rates start to rise again, that typically will work against the value of silver.

Resistance and Support Barriers

Keep in mind that the 50-day EMA above is more likely going to continue to be a little bit of a resistance barrier, but the $80 level above there is going to be a region where I think it’ll be difficult to get beyond.

Breaking above $80 opens up the possibility of heading to the $90 level, but we’ll have to wait and see. I think that would take a fairly significant change in attitude as far as rates are concerned, and the attitude of traders in general.

If we pull back from here, the $70 level is a major support level with the 200-day EMA underneath, offering even more support for the silver market, with the level being watched very closely. This will be an area that will make headlines as it is a big, round, psychologically important figure.

As things stand right now, I think we still see the overall consolidation between $70 and $80 as being the major barrier for the market. In other words, short-term back and forth trading remains the same thing that we are going to see at this point in time. Silver remains a dangerous place, as there are a lot of headline risks and negativity coming from bonds from time to time.

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