Silver Price Analysis – Silver Rises with Falling rates Early on Thursday

Silver Technical Analysis

The silver market has risen quite nicely during the trading session here on Thursday in the early hours as yields start to drop. The 10-year yield, of course, is what I typically watch, and it looks like it’s trying to form a little bit of a double top after shooting straight up in the air again.

There are a lot of concerns out there about the Middle East and energy shocks and that has a lot to do with what we’re seeing in this market. Ultimately, I think given enough time, this is a market that will probably try to find a way to get back to the 50-day EMA, but we’ll just have to wait and see how that plays out.

Market Outlook and Sustainability of Rates

I think given enough time, we have a situation where traders are looking at this through the prism of whether or not rates are sustainable. I don’t think they are at this point and with that being the case, I believe you have to look at this as a market that eventually does grind higher, but you have to look for the occasional spike on the 10-year yield. This is something that active traders will have to keep in mind, as we have seen such a strong correlation lately.

If we break down below the $70 level, that of course would be a very negative turn of events, almost certainly right along with rising rates. At that point, it could open up a move down to the 200-day EMA, but I think we’re trying to stay in the range between $70 and $80 for the time being.

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