Silver Price Analysis – Silver Risks Breakdown as US Interest Rates Surge

Silver Technical Analysis

The silver market looks very much like a market that is trying to sort out where to go next, with the reality being that we are just hanging around the $60 level. If this market were to break down from here, perhaps below the $57 level, then we have a situation where the bottom could fall out, and we could go looking at the $50 level as a potential target. Short-term rallies will continue to be selling opportunities at the first signs of exhaustion, from what I can see.

Interest Rates and Inflationary Headwinds

But really, at this point, I think you have to watch very closely the interest rate markets in the United States. If they continue to rally, I think that ends up being the death of silver, at least in the short term. The $50 level should continue to be important; going back decades, it’s been important, and I don’t see why that would be any different. This could be an excellent entry for longer-term traders, but we will have to wait and see if that opportunity arises.

I would be very interested in buying near that level, assuming that we stabilize. In the short term, though, it just looks like a market that can’t pick up its feet. There are concerns about inflation, and therefore there are concerns about interest rates rising, which works against the value of silver, especially when the US dollar rises in conjunction, which is exactly the play that we’ve seen. I continue to look at any rally in silver with suspicion.

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